UPI Payments: What is the UPI Now Pay Later feature in UPI payments? Learn how it works and its benefits.

The UPI Now Pay Later feature is especially beneficial for users who need to make a payment suddenly or are unable to make a payment due to limited balance.

If you’ve ever faced the problem of UPI payments failing due to low bank balance, there’s some relief for you. The National Payments Corporation of India (NPCI) has launched a new and extremely useful feature for UPI users, ‘UPI Now Pay Later’, also known as pre-approved credit line through UPI. With the introduction of this feature, UPI will no longer be limited to the balance in your bank account. If needed, you can make instant payments using pre-approved credit from your bank.

What is UPI Now Pay Later

This is a digital credit facility under which banks provide customers with a pre-approved credit limit. Using this limit, users can make instant payments through UPI and redeem the amount later within a specified timeframe. This facility works like short-term credit and is especially helpful when there is insufficient balance in the account.

How does this work

According to HeroFinCorp, the bank or lender sets a specific credit limit based on the user’s profile and credit score. For example, from ₹20,000 to ₹50,000. When making a payment using UPI, the user can select their credit line instead of their bank account. This process completes the payment instantly and the amount is adjusted against the credit limit. Upon completion of the billing cycle, a bill is generated for the amount used, which must be repaid according to the agreed terms.

Know its main benefits

Instant credit facility: seamless payments even with low balances

Wide acceptance: Can be used wherever UPI is accepted

Flexible payment options: Flexible payment options

Completely digital process: Easy and fast onboarding without any paperwork

What is the eligibility

You must be 18 years of age or older and a citizen of India. Documents must include a PAN and Aadhaar card linked to your mobile number. You must also have an active account with a UPI-enabled bank. Yes, your CIBIL score must be 750 or higher. This move by NPCI is an important initiative towards making digital payments more accessible, flexible, and consumer-friendly.

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