UPI-enabled credit cards see 20% monthly growth, users avg 40 transactions

Users of UPI-enabled credit cards are averaging 40 transactions per month, eight times higher than traditional credit card users, according to a report by Kiwi, a fintech company offering credit on UPI services.

 

The number of transactions made with UPI-enabled credit cards is growing at a rate of 20 per cent monthly, accompanied by a 5 per cent rise in average monthly spending. In 2024, the average monthly spending per user was Rs 40,000, data from Kiwi revealed.

 

Despite the increased frequency of use, the average transaction size for UPI-enabled credit cards in 2024 stood at Rs 1,125—around four times lower than the Rs 4,000 average transaction value for traditional credit cards.

 

“The 2024 report noted that 50 per cent of new credit cards issued in 2024 were virtual cards, with Kiwi leading the charge in enabling secure, digital credit access,” the company stated.

 

This growth aligns with a broader trend in transactions processed through UPI on RuPay credit cards.

 

Data from the Ministry of Finance shows that transactions through RuPay credit cards on UPI doubled in the first seven months of FY25 compared to FY24.

 

By October 2024, over 750 million transactions worth Rs 63,825.8 crore were processed. In FY24, UPI RuPay credit card transactions amounted to 362.8 million, with a total value of Rs 33,439.24 crore.

 

The market share of RuPay credit cards rose from 3 per cent in 2023 to 12 per cent in 2024. 

 

RuPay, India’s indigenous payment network system, was launched in 2012 by the National Payments Corporation of India (NPCI). RuPay credit cards were rolled out in June 2017, and in June 2022, the Reserve Bank of India (RBI) approved UPI integration with NPCI’s RuPay credit cards.

 

Kiwi went live with UPI-enabled credit card offerings in June 2023.

 

The company's data shows that 75 per cent of UPI-enabled credit card transactions occur at smaller stores, including grocery shops and local retailers.

 

Bengaluru led the adoption of UPI-enabled credit cards, followed by Hyderabad, Delhi, and Mumbai. Among non-metro cities, Pune led adoption, followed by Ahmedabad, Jaipur, Indore, and Chandigarh.

 

About 45 per cent of UPI-enabled credit card users are below the age of 30, 30 per cent are aged between 31 and 40, and 20 per cent fall in the 41-50 age bracket.

 

“By combining the convenience and widespread acceptance of UPI with the power of credit, we are witnessing a new wave of financial inclusion,” said Mohit Bedi, co-founder of Kiwi.

 

Kiwi currently has a customer base of over 1.5 million, adding 3-4 lakh new customers and issuing 10,000-15,000 credit cards monthly. The company records about Rs 300 crore in monthly spending, of which 60 per cent are credit transactions, with the remainder being debit transactions.