ZET UPI enables RuPay credit card payments after NPCI approval, expanding digital credit transactions, cashback rewards, and financial inclusion across India.
ZET Secures NPCI Approval to Enable UPI Payments via RuPay Credit Cards
In a significant fintech development, Indian digital finance company ZET has received regulatory approval from the National Payments Corporation of India (NPCI) to operate as a Third‑Party Application Provider (TPAP) on the Unified Payments Interface (UPI) network. This approval enables ZET to launch its own UPI service called ZET UPI, which allows users to make Payments by linking their RuPay credit cards directly through UPI.
Traditionally, UPI payments in India were largely restricted to bank accounts, prepaid instruments, and debit cards. However, the integration of credit cards into the UPI ecosystem marks a shift toward enabling credit‑led digital payments that combine credit convenience with UPI’s ease of use. ZET’s entry is set to broaden payment options and deepen digital financial adoption among Indian consumers.
TPAP Approval: What It Means for Digital Payments
A Third‑Party Application Provider (TPAP) licence from NPCI means ZET can now function as a recognised UPI service provider, offering users the ability to send and receive money through its platform. TPAPs partner with banks and payment technology firms to securely process UPI transactions across merchant and peer‑to‑peer channels.
With this approval, ZET can onboard users, tie their RuPay credit cards to UPI, facilitate merchant payments via QR codes and checkout pages, and usher in a credit‑linked payment flow for everyday transactions.
Launch of ZET UPI: Expanding the UPI Ecosystem
Following the approval, ZET has launched ZET UPI, a platform where users can link their RuPay credit cards issued through ZET and make UPI payments for purchases at stores, online payments, QR scans, and other digital payment interactions. This effectively extends UPI beyond direct bank debits to include credit financing capabilities.
ZET’s UPI service operates in partnership with RBL Bank as its banking partner, while the backend payment processing infrastructure is powered by fintech infrastructure provider Juspay. These collaborations ensure compliance, security, and smooth transaction processing for users.
Benefits for Users: Cashback, Rewards, and Convenience
To attract users to its UPI offering, ZET is providing cashback incentives on UPI transactions made via RuPay credit cards. These rewards are in addition to the usual credit card benefits, giving users more reasons to adopt digital credit payments for daily spendings.
This cashback strategy is expected to boost digital payment adoption, particularly among younger demographics and first‑time credit users who are increasingly drawn to convenient and reward‑rich payment methods.
Broader Impact: Strengthening Fintech and Financial Inclusion
ZET’s entry into the UPI landscape aligns with India’s larger digital payments goals, which aim to deepen financial inclusion, reduce dependency on physical cash, and expand digital financial infrastructure. By enabling RuPay credit card transactions over UPI, the initiative broadens the payment ecosystem and offers more flexibility to consumers who rely on short‑term credit.
Additionally, the growth of credit‑linked UPI payments could benefit merchants by increasing transaction volumes and giving customers more ways to pay seamlessly.
Why This News is Important for Government Exam Aspirants
Relevance to Digital Payments and Economy
The approval granted to ZET by NPCI to offer UPI services via RuPay credit cards reflects a major advancement in India’s digital payments infrastructure. For aspirants preparing for exams like IBPS, SBI PO, RBI Assistant, SSC, UPSC, and State PSCs, this news is crucial because it highlights how financial innovation impacts the economy and financial inclusion. Digital payments are frequently featured in current affairs sections of competitive exams and general awareness papers.
Connection to Government Policies
This development ties into broader government and regulatory initiatives to promote a cashless economy, leverage homegrown financial networks (like RuPay and UPI), and enhance financial inclusion across urban and rural India. Understanding policy moves by bodies like NPCI and RBI is essential for exams covering the Indian economy, banking systems, and governance.
Exam Focus Areas
Questions may focus on:
- UPI expansion to include credit cards
- Roles of NPCI and TPAP in UPI governance
- Impact on consumers and merchants
- Benefits of digital payment innovations
- Government’s vision for fintech and digital finance
Aspiring candidates should be able to explain why UPI credit integration matters, how it expands digital finance and what it means for everyday financial transactions.
Historical Context: Evolution of UPI and Credit‑Linked Payments
The Unified Payments Interface (UPI) was launched in 2016 by NPCI to revolutionise digital payments in India. Initially, UPI allowed instant fund transfers using bank accounts without needing card details. Over the years, it became the backbone of India’s digital payments ecosystem.
In recent years, the Reserve Bank of India (RBI) and NPCI have worked to extend UPI’s capabilities beyond bank accounts to include credit cards, prepaid wallets, and other financial instruments. In 2023, several banks, including YES Bank, Axis Bank, HDFC Bank, and Kotak Mahindra Bank, introduced support for RuPay credit cards on UPI, enabling credit payments over the interface.
These moves aimed to combine the convenience of UPI with the benefits of credit, such as short‑term financing and rewards. The adoption of RuPay credit cards on UPI is also part of the government’s vision to strengthen India’s domestic payment stack and reduce reliance on foreign card networks.
The approval of fintech companies like ZET to operate as TPAPs represents the next phase of this evolution, where non‑bank players can innovate within the UPI ecosystem and bring new services to users, expanding digital payment accessibility nationwide.
Key Takeaways from “ZET Secures NPCI Approval for UPI via RuPay Credit Cards”
| S.No | Key Takeaway |
|---|---|
| 1 | ZET has received NPCI approval as a TPAP to provide UPI services. |
| 2 | ZET can now enable UPI payments using RuPay credit cards via its ZET UPI platform. |
| 3 | The UPI service is powered by RBL Bank and technology from Juspay. |
| 4 | Users can get cashback and rewards on UPI transactions made with RuPay credit cards. |
| 5 | This development expands digital credit payments and supports India’s financial inclusion objectives. |
FAQs: Frequently Asked Questions
1. What is ZET UPI?
ZET UPI is a digital payment platform launched by fintech company ZET after receiving TPAP approval from NPCI. It allows users to link their RuPay credit cards to make payments via the UPI system for online, in-store, and QR transactions.
2. What is a TPAP approval?
Third-Party Application Provider (TPAP) approval is granted by NPCI to non-bank entities, allowing them to operate UPI services, onboard users, and process transactions securely through the UPI ecosystem.
3. Which bank is ZET partnering with for UPI?
ZET’s UPI service is in partnership with RBL Bank, while its backend payment processing is powered by Juspay.
4. What benefits do users get with RuPay credit card UPI payments?
Users can avail cashback, reward points, and credit-led transaction convenience while using RuPay credit cards via UPI.
5. Why is this development important for India’s digital payments?
It strengthens India’s financial inclusion efforts, broadens digital credit adoption, and reduces reliance on cash, contributing to a cashless economy.
6. Which governing body regulates UPI in India?
The National Payments Corporation of India (NPCI) regulates UPI and grants TPAP approvals to fintech companies like ZET.
7. How does UPI via RuPay credit cards differ from regular UPI?
While regular UPI transactions typically use bank accounts or debit cards, this integration allows credit card-based payments, giving users the flexibility to spend on credit while using UPI.
8. Can this service be used for peer-to-peer (P2P) payments?
Yes, ZET UPI allows both merchant payments and peer-to-peer money transfers using RuPay credit cards.
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