BharatPe has stepped into the UPI-linked credit space with the launch of ‘Pay Later with BharatPe’, developed in partnership with YES Bank. Powered by the National Payments Corporation of India (NPCI), the offering marks a key expansion of BharatPe’s financial services portfolio, aimed at improving access to short-term credit for both consumers and merchants.
The new product allows users to make UPI payments using a pre-approved credit line, rather than drawing directly from their bank accounts. Payments can be made across all UPI-enabled merchant touchpoints, including QR code scans at physical stores, online purchases, bill payments, and mobile or DTH recharges through the BharatPe app.
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45 days of Interest-Free Credit
The onboarding process is fully digital and paperless, with instant access to credit after completing basic KYC requirements. Users can avail up to 45 days of interest-free credit, after which they have the option to repay the full amount or convert the outstanding balance into EMIs ranging from three to twelve months. Once repayments are completed, the credit limit is automatically refreshed. All usage details, repayment schedules, and available limits are clearly visible within the app.
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Commenting on the launch, BharatPe CEO Nalin Negi highlighted that access to formal credit in India remains limited, especially for small merchants and first-time borrowers. He said the company’s goal is to build a compliant and scalable credit solution that integrates seamlessly with everyday payment behaviour while lowering barriers to borrowing.
YES Bank stated that the collaboration brings together its digital underwriting and onboarding capabilities with BharatPe’s large merchant and consumer base. The partnership reflects a broader trend of fintech companies and traditional banks working together to deliver credit through familiar digital payment platforms.
Rewards & Vouchers
‘Pay Later with BharatPe’ users will also benefit from BharatPe UPI Rewards. Transactions earn Zillion coins, which can be redeemed for brand vouchers, products, or bill payments, adding an incentive layer to routine UPI usage. With this move, BharatPe is signalling a shift beyond payments toward embedded credit, positioning UPI not just as a transaction rail but as a gateway to accessible, everyday financing.
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Onboarding Process
To onboard, users need to access the ‘Pay Later’ option on the BharatPe UPI app, complete YES BANK’s KYC process, link the credit line to UPI, authenticate using Aadhaar, set a UPI PIN and begin transactions using the YES BANK-powered credit line.
