NPST & Hyperface Partner to Enable Instant UPI Credit for Banks

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NPST, a leading fintech company in India specializing in UPI and digital banking solutions, has announced a strategic partnership with Hyperface to facilitate instant credit access via UPI. This collaboration aims to bridge the gap in India’s financial sector, where credit card penetration is significantly lower than UPI adoption. With only 100 million credit card users compared to over 400 million UPI users, the lack of accessible credit is a challenge.

Through this partnership, banks and credit issuers can leverage NPST’s UPI switch technology integrated with Hyperface’s Embedded Banking Platform. This solution will allow banks to provide pre-approved credit lines at the point of sale, enabling consumers to split payments into flexible installments. Merchants will benefit from higher conversion rates, larger transactions, and improved customer retention.

NPST’s Co-Founder and CEO, Deepak Chand Thakur, emphasized that this initiative will democratize access to credit through UPI, driving transaction volumes and financial inclusion. Hyperface’s Co-Founder and CEO, Ramanathan RV, highlighted the agility and scalability of their Credit Management Engine, ensuring rapid deployment of UPI-based credit solutions. The partnership aligns with the growing demand for digital-first credit offerings in India, shaping the future of embedded finance in the country.

1. About NPST and Hyperface

1.1 NPST: Company Overview

NPST (Network People Services Technologies) is an Indian fintech company that provides digital banking and payment solutions. It specializes in UPI-based services, catering to banks, financial institutions, and payment service providers. The company’s primary offerings include:

• UPI Switch Technology: Enables seamless UPI transactions for banks and fintech firms.
• Digital Payment Solutions: Provides services for online and offline payments.
• Banking APIs and Infrastructure: Supports banks in digitizing financial services.

1.2 NPST’s Revenue Model and Funding

NPST generates revenue through a mix of transaction-based fees, SaaS-based subscription models, and enterprise solutions. It collaborates with banks and financial institutions to integrate UPI-powered payment and credit solutions. The company has received funding from various investors, focusing on scaling its UPI infrastructure and expanding digital banking capabilities.

1.3 Hyperface: Company Overview

Hyperface is a Credit Cards-as-a-Service (CCaaS) platform that enables financial institutions to build and deploy digital-first credit products. It provides:

• Credit Management Engine: A modular system for issuing and managing credit lines.
• Embedded Banking Platform: Supports fintech firms in integrating credit solutions.
• Compliance and Risk Assessment Tools: Ensures secure and scalable credit offerings.

1.4 Hyperface’s Revenue Model and Growth

Hyperface follows a B2B SaaS revenue model, earning from licensing fees, API usage charges, and revenue-sharing agreements with partner banks. It has secured funding from investors aiming to revolutionize India’s credit ecosystem by leveraging embedded finance technology.

2. The NPST-Hyperface Partnership

2.1 The Need for Instant UPI Credit

Despite India’s rising middle class and growing digital economy, access to affordable credit remains a challenge due to the low penetration of credit cards. The NPST-Hyperface collaboration addresses this issue by offering UPI-based embedded credit lines.

2.2 How the Solution Works

2.2.1 UPI Integration NPST will integrate its UPI switch technology with Hyperface’s Credit Management Engine.

2.2.2 Pre-Approved Credit Lines Consumers will get access to instant UPI credit at the point of sale.

2.2.3 Flexible Repayment Options Users can split payments into installments.

2.2.4 Merchant Benefits Increased transaction values and customer retention.

2.3 Industry Impact and Benefits

2.3.1 For Consumers Easy access to credit without requiring a credit card.

2.3.2 For Banks A scalable credit solution leveraging UPI infrastructure.

2.3.3 For Merchants Improved sales and customer experience.

3. Industry Insights and Trends

3.1 Rise of Embedded Finance More fintech firms are integrating financial services into non-financial platforms.

3.2 Growth of UPI in India UPI transactions crossed 10 billion monthly transactions, making it the preferred payment mode.

3.3 Digital-First Lending Banks are adopting digital credit solutions to cater to tech-savvy customers.

4. Learning for Startups and Entrepreneurs

4.1 Embedded Finance as a Growth Strategy Startups can explore embedded finance to enhance customer experience and drive revenue. By integrating credit, lending, or insurance solutions, businesses can offer value-added services.

4.2 Leveraging UPI for Financial Inclusion UPI has transformed India’s payment ecosystem. Startups should explore UPI-based innovations, including lending and savings solutions.

4.3 Collaborations and Partnerships Strategic partnerships, like NPST and Hyperface, enable faster innovation. Fintech startups should focus on collaborations with banks and technology providers to scale effectively.

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