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Credit is Moving from Plastic to QR
Think about it: when was the last time you pulled out a credit card to pay for groceries? For most shoppers today, the answer is simple — they don’t. They open their UPI app.
More than half of all RuPay credit card spends already happen on UPI. For customers, credit has moved from plastic to their phone screens. If UPI works for a coffee or cab ride, why shouldn’t it also work for splitting a ₹50,000 phone into easy EMIs?
This shift means something big: credit is no longer tied to cards — it lives inside UPI.
Why EMI No Longer Needs a Swipe
There was a time when a card machine swipe was the only way to unlock credit at checkout. But that world is changing fast.
- Nearly 50% of RuPay credit card spending now happens through UPI instead of traditional swipes.
- RuPay’s share of active credit cards stands at ~12%, yet it already powers about half of all new credit cards issued in India as of mid-2024.
Even the design of cards reflects this shift — many new RuPay credit cards don’t bother with embossed numbers anymore, because the future of credit isn’t a plastic swipe. It’s a QR scan.
For merchants, this means one thing: the same QR on your counter, or the same UPI checkout button online, can now unlock EMI: no extra hardware, no costly contracts, no friction.
The Consumer Behaviour Shift
India’s new shoppers are mobile-first, UPI-heavy, and card-light.
- There are 350M+ active UPI users compared to ~100M active credit card users.
- UPI clocked 14.2 billion transactions in July 2025, making it the go-to payment rail for almost everything.
This generation doesn’t separate debit and credit. Their expectation is simple: if UPI can pay instantly from my account, it should also let me pay in EMI.
That’s why EMI on UPI feels so natural. It doesn’t ask people to learn something new — it simply adds more power to a flow they already trust.
Merchant Empowerment: Credit Everywhere Customers Pay
Not long ago, EMI was something you’d only hear about at a big retail chain with a card machine on the counter. Smaller stores and online brands had little chance to offer it — even when their customers clearly wanted the option.
That’s what changes with EMI on UPI. Now, the same QR at a jewellery shop in Jaipur and the same checkout button on a D2C website can both unlock affordability. For customers, it feels seamless; for merchants, it feels like saying “yes” more often.
- In stores, shoppers who once walked away now upgrade without hesitation. A budget phone becomes a premium one. A smaller sofa becomes a larger set. Customers leave smiling — not second-guessing.
- Online, fewer carts are abandoned at the payment page. Shoppers see EMI right beside UPI Pay, and instead of delaying the purchase, they complete it in that moment.
- For merchants, it’s more than a payment mode. It’s confidence. Staff no longer have to say no when asked about EMI. Owners see bigger baskets without running extra discounts.
One Jaipur jeweller put it simply: “Earlier, young couples admired gold worth ₹60,000 but left without buying. Now they scan, pick EMI, and take it home the same day.”
That’s the power of EMI on UPI — it takes affordability out of the malls and puts it into every store and every checkout flow.
Contextual Credit as the Next Big Play
UPI has already changed how India pays. Now, it’s starting to change why and when customers decide to pay. With contextual features being rolled out by NPCI—from EMI and offers to lounge access, ticket booking, and more — UPI apps are becoming not just payment tools but decision engines.
This is a fundamental shift:
- Checkout is no longer the end of the customer journey. It’s the moment of influence.
- Banks can surface personalised EMI options, rewards, and credit lines right when intent is at its peak.
- Customers don’t have to plan affordability — it’s available in real-time, in the exact context of purchase.
Imagine this: a customer scans a QR to pay ₹25,000. In that instant, their UPI app doesn’t just ask, “Pay now?” — it says:
Example: A shopper scans a QR code for a ₹25,000 fridge. Instead of just “Pay Now”, their app shows:
- “Pay in 6 EMIs of ₹4,200 at 0% interest.”
- “Get 5% cashback with your bank.”
- “Earn double reward points on this spend.”
This changes the psychology of checkout. What was once a friction point (price) becomes an opportunity point (value, affordability, delight).
Why This Matters to Merchants
For merchants, contextual credit is more than a payment feature — it’s a sales lever:
- Higher Conversions → Shoppers are nudged to complete instead of abandoning.
- Bigger Baskets → No-cost EMI and instant offers push upgrades.
In other words, contextual UPI makes checkout a moment of opportunity — where affordability, offers, and delight converge to help customers say yes.
What’s Next: The New Rails of Credit
Analysts predict UPI-based credit transactions will triple by 2027, overtaking traditional card EMI volumes in both scale and reach.
The big question: who will win? It won’t just be about offering EMI — it will be about balancing scale, compliance, and a frictionless customer experience. Those who get all three right will define the next chapter of India’s payments story.
The Bigger Picture
India has always skipped steps on its payments journey. We skipped cheques, made cards secondary, and put UPI at the centre of everyday life. Now, we’re moving beyond the POS terminal and putting EMI straight into QR and online checkout flows.
For merchants, the meaning is simple: more chances to say yes.
- Yes to bigger baskets.
- Yes to premium upgrades.
- Yes to customers who would’ve walked away yesterday, but buy with confidence today.
At Cashfree Payments, we’re building for this future—helping over 800,000 businesses power faster payments, flexible affordability, and compliant credit experiences on UPI. With EMI on UPI, we’re making affordability accessible not just for large retailers, but for every merchant — from local stores to fast-scaling D2C brands.
Ready to offer EMI on UPI for your customers? Get started with Cashfree today and unlock bigger baskets, higher conversions, and happier customers — all from the same UPI flow.
