Credit card platform Kiwi launches 'credit on UPI' service

Kiwi has successfully raised $6 million in pre-seed funding from a group of renowned investors

Kiwi, a credit card platform, on May 3, announced the launch of a new solution called "Credit on UPI" for customers. The solution has been certified by the NPCI, making Kiwi the first app in India to provide "Credit on UPI" by issuing Rupay Cards in collaboration with banks.

The launch of this solution is a significant move by Kiwi towards creating one of the most comprehensive direct-to-consumer (D2C) models in the credit market. The company's mobile application will allow users to make payments securely using either a credit card or bank account, directly from their phones.

If there is one technology that has truly become a part of India’s everyday life, it is the Unified Payment Interface, commonly known as UPI. Introduced in 2016, UPI has transformed the banking industry by making financial services accessible to people from all walks of life, including those in remote areas.

In March, the National Payments Corporation of India (NPCI) recorded a significant surge in Peer-to-Merchant (P2M) transactions made through the UPI platform. The transactions increased by 120 percent YoY, reaching an all-time high of 4.8 billion. Moreover, the platform witnessed a 76 percent YoY rise in the value of payments made, amounting to Rs. 3.2 trillion.

Kiwi has successfully raised $6 million in pre-seed funding from a group of renowned investors, including Nexus Venture Partners, Stellaris Venture Partners, and several angel investors.

The co-founders of Kiwi are Siddharth Mehta (ex-CEO, Freecharge), Mohit Bedi (ex-Axis Bank & PayU), and Anup Agrawal (ex- business head, LazyPay), all of whom are senior fintech experts and veterans of the banking industry.

Game changer

Siddharth Mehta, co-founder, Kiwi, said, "UPI has become the most inclusive mode of payment in India, with over 30 crore unique users and 5 crore merchants onboarded on the platform. With the launch of Kiwi app, for the first time in India, users can now leverage the power of a (RuPay) credit card with the convenience and ease of UPI. Our vision is to enable access to credit on UPI for 1 million users over the next 18 months."

Kiwi users will receive a RuPay credit card instantly, which they can link to UPI and use for "Credit on UPI" transactions both online and offline. The Kiwi app will offer card management facilities, including blocking the card, increasing the limit, and making payments.

Additionally, users will earn rewards for every transaction.

Praveena Rai, COO, NPCI said, "In our step towards attaining the goal of ‘Digital Payments for All’, Kiwi will be a game-changer in the Indian credit card industry. With the monthly expenditure on UPI P2M transactions amounting to approximately Rs. 3.2 lakh crore, which is almost 2.5x larger than the monthly credit card spends, Kiwi is set to capitalise on a significant untapped market."