Unity Bank and BharatPe Unveil India’s First EMI-Driven Credit Card Partnership

India Unveils First EMI-Driven Credit Card,Offering Lifetime Free Access

New Delhi – In a significant advancement for India’s financial technology landscape,BharatPe,in partnership with Unity Small Finance Bank,today announced the launch of the Unity Bank BharatPe Credit Card. This innovative offering is positioned as the nation’s first credit card explicitly designed around easy monthly installment (EMI) conversions, aiming to provide consumers with a transparent and rewarding credit experience.

Revolutionizing Credit Access with a Zero-Fee Structure

The newly launched card breaks from conventional credit card models by eliminating several common fees. Customers will not encounter joining fees, annual charges, processing costs, or foreclosure penalties. This commitment to transparency is designed to empower users to manage their finances responsibly and avoid the pitfalls of hidden costs. Furthermore, the card grants users the freedom to prepay EMIs at any time, without incurring additional penalties.

Unlimited Rewards and Seamless UPI Integration

A key feature of the Unity Bank BharatPe Credit Card is its unlimited 2% rewards program,branded as “Zillion Coins,” earned on all transactions upon EMI conversion.This program applies across all spending categories, setting it apart from many cards with capped reward structures. These Zillion Coins are redeemable through the BharatPe app for brand vouchers, products, or even to offset credit card bills.

The card, powered by the RuPay network, can be seamlessly linked to the unified Payments Interface (UPI), extending its usability to millions of merchants nationwide. This integration facilitates secure and convenient payments for everyday purchases, both online and offline. According to the National payments Corporation of India (NPCI), UPI transactions have surged by over 80% in the last year, demonstrating the growing preference for digital payments in India.

Key Features at a Glance

Feature	Details
Rewards	Unlimited 2% Zillion Coins on EMI conversions
Fees	Zero joining, annual, processing, and foreclosure fees
Network	RuPay
UPI Integration	Seamlessly links to UPI for broader merchant acceptance
EMI Options	Flexible tenures up to 12 months

Executive Perspectives

Kohinoor Biswas, Head – Consumer Business at BharatPe, emphasized the company’s dedication to simplifying credit access. “Our focus has always been to make access to credit simple, transparent, and inclusive,” Biswas stated. “With the Unity Bank BharatPe Credit card,customers get a truly lifetime free card with no hidden charges.”

Aditya Harkauli, Chief Business Officer – Digital banking at Unity Bank, added, “The Unity Bank BharatPe Credit Card aims to address this consumer need, by combining instant payments, meaningful credit limits, flexible ‘pay-as-you-use’ options and generous rewards.”

Applying for the Card: A Six-Step Process

1. Download the BharatPe App.
2. Complete the onboarding process by entering your phone number and PAN.
3. Finish your eKYC and VKYC verification.
4. Receive your credit limit based on the eligibility check results.
5. Activate your card by setting your billing date and PIN.
6. Begin using your Unity Bank BharatPe Credit Card for transactions.

Understanding the Rise of EMI-Based Credit Cards

The launch of this card reflects a broader trend in the financial sector towards offering more flexible and transparent credit solutions. EMI-based credit cards empower consumers to manage larger purchases without accumulating high-interest debt, a growing concern in india where personal credit card debt has seen a 15% increase in the last fiscal year, according to Reserve Bank of India data. The emphasis on rewards and zero fees further enhances the appeal of these cards, attracting a wider range of consumers.

Did you No? India’s digital payment ecosystem is one of the fastest-growing in the world, with UPI emerging as the dominant mode of payment.

Pro Tip: Always review your credit card statement carefully and pay your EMIs on time to maintain a good credit score.

Frequently Asked Questions About the Unity Bank BharatPe credit Card

What are your thoughts on this innovative approach to credit cards? Do you think more financial institutions should adopt a zero-fee structure?

Share this article with your network and let us know your opinions in the comments below!

What are the primary benefits of the Unity Bank and BharatPe credit card for Indian merchants?

Revolutionizing Credit Access for Indian Merchants

Unity bank and BharatPe have jointly launched what is being hailed as India’s first EMI-driven credit card,specifically designed for merchants. This innovative financial product aims to address the credit gap faced by small and medium-sized businesses (SMBs) across the country, offering a flexible and accessible credit solution. the partnership leverages BharatPe’s extensive merchant network and Unity Bank’s financial infrastructure to deliver a unique offering in the Indian fintech landscape. This new merchant credit card is poised to reshape how SMBs manage their finances and invest in growth.

Understanding the Core Features of the EMI-Driven Credit Card

This isn’t your typical credit card. The key differentiator lies in its focus on Equated Monthly Installments (EMIs). Here’s a breakdown of the core features:

EMI-Focused Structure: The card is designed to facilitate purchases with the option to convert them into affordable EMIs. This is especially beneficial for merchants needing to invest in inventory, equipment, or other business essentials.

Credit Limits Tailored to Business Needs: Credit limits are determined based on a merchant’s transaction history with BharatPe, providing a more accurate assessment of creditworthiness than customary methods. This allows for small business credit access previously unavailable.

Seamless Integration with bharatpe Ecosystem: The card seamlessly integrates with the BharatPe app, allowing merchants to easily track spending, manage EMIs, and access other financial services.

Reduced Interest Rates: Compared to traditional business loans or credit lines, the EMI-driven card offers competitive interest rates, making it a cost-effective financing option.

Digital First Approach: The entire process, from application to repayment, is largely digital, streamlining the experience for tech-savvy merchants.

How the Partnership works: Unity bank & BharatPe Synergy

The collaboration between Unity Bank and BharatPe is a strategic alignment of strengths.

Unity Bank’s Role: Unity Bank provides the underlying banking infrastructure, including credit risk assessment, card issuance, and payment processing. Their expertise in financial services is crucial to the card’s functionality.

BharatPe’s Role: BharatPe contributes its vast network of over 10 million merchants, its data-rich transaction history, and its user-amiable app platform. This provides a ready-made distribution channel and valuable insights into merchant behavior.

Data-Driven Credit Assessment: bharatpe’s transaction data allows for a more nuanced credit scoring model, extending credit access to merchants who might be overlooked by traditional lenders. This is a meaningful step towards financial inclusion for SMBs.

Benefits for Indian Merchants: A Deeper Dive

The EMI-driven credit card offers a multitude of benefits for Indian merchants:

Increased Access to credit: Overcomes the challenges of obtaining traditional business loans, particularly for smaller merchants with limited credit history.

Improved Cash Flow Management: EMIs allow merchants to spread out payments over time, easing cash flow pressures.

Investment in Growth: Enables merchants to invest in inventory, equipment, marketing, and other areas to expand their businesses.

Simplified Financial Management: The integrated platform simplifies tracking spending and managing repayments.

Reduced Reliance on Informal Lending: Provides a formal and obvious credit solution, reducing reliance on possibly exploitative informal lenders.

Building Credit History: Responsible use of the card helps merchants build a positive credit history, improving their access to future financing options.

Target Audience and Eligibility Criteria

The card is primarily targeted towards merchants already using BharatPe’s payment solutions. Key eligibility criteria include:

Existing BharatPe Merchant: Applicants must be registered merchants on the BharatPe platform.

Transaction History: A consistent transaction history through BharatPe is essential for credit assessment.

Business Stability: Demonstrated business stability and a reasonable repayment capacity.

KYC Compliance: Completion of Know Your Customer (KYC) verification.

Credit Score (Considered,but not primary): While a traditional credit score is considered,it’s not the primary factor in the approval process.

Impact on the Indian Fintech Landscape & Future Outlook

This partnership signifies a major shift in the Indian fintech landscape. It demonstrates the power of collaboration between traditional banks and innovative fintech companies to address the unmet financial needs of SMBs.

Competition in the Merchant Financing Space: The launch is expected to intensify competition in the merchant financing space, driving innovation and better terms for merchants.

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