New Delhi, 22 January 2025: Rupay’s UPI-enabled credit cards are transforming the way Indians use credit, promoting accessibility and responsible spending. According to Kiwi, India’s leading credit-on-UPI platform, these cards have emerged as the essential payment instrument. The report was created to analyse emerging trends in credit card usage, note the impact of UPI integration on credit behaviour and the role of digital payments in driving financial inclusion across India.
The Kiwi 2024 report highlights impressive growth in UPI-enabled credit card usage. UPI-enabled credit card users are making 40 transactions per month on average, eight times higher than traditional credit card users. This number is growing by 20% every month, along with a 5% rise in average monthly spending, now at ₹40,000 per user.
The average transaction size for UPI credit cards is ₹1,125, much lower than the ₹4,000 average for traditional credit cards, making it the ideal payment option for everyday purchases. Small merchants are benefiting greatly from this shift, with 75% of transactions occurring at smaller stores like grocery shops, and local retailers.
Among metro-cities, Bengaluru tops in adoption of UPI-enabled credit cards, followed by Hyderabad, Delhi, Mumbai. Among non-metros, Pune tops in adoption followed by Ahmedabad, Jaipur, Indore, Chandigarh, etc.
Youth have been early adopters of UPI-enabled credit cards. About 45% of UPI-enabled credit card users are below the age of 30, followed by 30% aged between 31-40, and 20% aged between 41-50.
UPI’s vast network of 320 million merchant touchpoints has made credit more accessible than ever, well beyond the 9 million POS terminals used by traditional credit cards. The 2024 report also notes that 50% of new credit cards issued in 2024 were virtual cards, with Kiwi leading the charge in enabling secure, digital credit access.
The market share for Rupay credit cards has grown from 3% in 2023 to 12% in 2024, and the growth can be largely attributed to the rising popularity of UPI-enabled credit cards.
Kiwi Co-founder Mohit Bedi stated, “UPI-enabled credit cards are not just transforming how millions of Indians engage with credit, they are reshaping the entire payments ecosystem. By combining the convenience and widespread acceptance of UPI with the power of credit, we are seeing a new wave of financial inclusion. This marks a pivotal moment for India’s credit market, as UPI continues to empower individuals with more responsible, accessible, and transparent financial tools, driving a shift towards smarter spending habits and responsible credit usage across the country.”
RBI allowed the integration of UPI with NPCI’s Rupay credit cards earlier in June 2022 and Kiwi was among the first to go live with the offering in June 2023.