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Indian Fintech Leaders Pivot to Credit Markets Following Digital Payment Success
Technology Services · Internet Software/Services · cnbc · 2026-09-11
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Following the widespread adoption of digital payments, India's fintech sector is now aggressively expanding into the underserved consumer and small business credit space.
What Happened
Expansion into Credit: Having successfully revolutionized digital payments via the Unified Payments Interface (UPI), Indian fintech firms are now targeting the country's massive, underserved credit market. Industry leaders view this transition as the next major wave of digital transformation in the world's fastest-growing economy.
Market Opportunity: The potential for credit products is estimated to be more than double the size of the existing payments market. With only 15% of the adult population currently having access to formal credit, companies see a significant opportunity to capture demand from micro and small enterprises.
Data-Driven Lending Models: Fintechs are leveraging transaction history, e-commerce purchase data, and geolocation to assess risk and conduct due diligence for unsecured loans. This approach allows firms like PhonePe, BharatPe, and Amazon Pay to extend credit to customers who were previously excluded from traditional banking systems.
Government and Industry Outlook: Prime Minister Narendra Modi has encouraged the sector to scale non-payment financial services with the same efficiency seen in the payments space. As digital adoption grows in smaller cities, companies are scaling 'friction-free' lending models to bridge the gap between informal financing and formal capital access.