Kiwi Sees Rise in UPI-Based Credit Card Transactions with RuPay

Kiwi, a fintech firm specializing in UPI-based credit card management, has reported a significant increase in transactions through the RuPay credit card on UPI option. According to a report released on May 23, users are now spending over Rs 22,000 monthly using this payment method.

The report highlighted that credit card transactions on UPI have become the main mode of payment for many users. On average, users make 21 transactions per month using a credit card on UPI, which is four times higher than the number of transactions made with traditional physical credit cards.

Kiwi’s platform is processing more than Rs 100 crore worth of credit card UPI transactions every month. The market share of RuPay credit cards has grown from 3% in FY23 to 10% in FY24, largely due to the success of UPI. Kiwi has played a significant role in issuing RuPay credit cards and has seen swift adoption and usage.

Supported by the National Payments Corporation of India (NPCI), Kiwi offers credit cards on UPI in partnership with various banks. The company was co-founded in November 2022 by fintech and banking industry veterans Siddharth Mehta, Mohit Bedi, and Anup Agrawal. Kiwi launched its services with its first banking partner, Axis Bank, in July 2023.

The report also noted that the concept of virtual credit cards is gaining popularity, with nearly 20 out of every 100 credit cards issued being virtual. However, the average transaction size for credit cards on UPI is lower than that of traditional credit cards, averaging Rs 1,125 compared to Rs 4,000 for traditional credit card transactions.

This trend shows the growing preference for digital payments and the convenience offered by UPI-based credit card transactions.