A new stack has been introduced by fintech firm Zeta, which develops technology backend for banks and supports credit line-based transactions on Unified Payments Interface (UPI).

Bhavin Turakhia, a cofounder of Zeta says, “Zeta hopes to handle 50 percent of the trillion dollars in credit disbursals on UPI that occur by 2030. The company will serve financial institutions as a technology service provider (TSP).”

“The company wants to work with major banks who can offer this service to their consumers. By using their tech stack, banks can just focus on acquiring customers and underwriting. Beyond that, every kind of service from origination of the customer, management of the customer’s lifecycle, analytics, and experience management can be managed by the Zeta team,” says Turakhia.

“The growth of UPI has shown that all forms of credit, be it consumer loans, personal loans, EMI loans, everything will eventually come on UPI, we want to enable all such transactions,” Turakhia adds.

Zeta was recently valued at $1.5 billion in 2022. It has raised $340 million in equity capital from SoftBank, Sodexo, and Mastercard. Although Turakhia stated he isn't currently seeking new finance, he will only raise capital if a strategic partnership opportunity arises.

“Zeta is set to achieve global break-even very shortly,” says cofounder Ramki Gadipatti.

The company collaborates with numerous lenders in the US and other countries. Zeta is the platform of HDFC Bank's PayZapp mobile app in India.

Gadipatti says, “Powering the PayZapp app was a major learning for the fintech startup since it had taken the contract at a time when the private sector lender was under the banking regulator’s scrutiny for digital banking issues.”