Rupay’s UPI-enabled credit cards are transforming the way Indians use credit, promoting accessibility and responsible spending, says a report.
UPI-enabled credit card users are transforming the way people transact, averaging 40 transactions per month — eight times higher than traditional credit card users, according to a report by Kiwi, a credit-on-UPI platform. With a 20% monthly growth in usage and a 5% rise in spending, their average monthly expenditure has now reached Rs 40,000 per user, says the report.
The report has analysed emerging trends in credit card usage, noted the impact of UPI integration on credit behaviour and the role of digital payments in driving financial inclusion across India.
Impressive growth in UPI-enabled credit card usage
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 Rs 40,000 per user.
The average transaction size for UPI credit cards is Rs 1,125, much lower than the Rs 4,000 average for traditional credit cards, making it the ideal payment option for everyday purchases. Small merchants benefit greatly from this shift, with 75% of transactions occurring at smaller stores like grocery shops and local retailers.
Also read: UPI Fraud Alert: What is Jump Deposit Scam everyone is talking about?
Bengaluru tops in adoption of UPI-enabled credit cards
Among metro cities, Bengaluru tops in the adoption of UPI-enabled credit cards, followed by Hyderabad, Delhi, and Mumbai. According to the report, 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,
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