The market share of RuPay credit cards rose to 10% in FY24 from 3% in FY23, according to a report by credit on UPI platform Kiwi.
The report showed that credit card on UPI transactions worth over Rs 100 crore occur on Kiwi’s platform on a monthly basis. Around 75% of these occur at small merchants. The broad network of merchant acceptance touch points for UPI payments coupled with the convenience of payments has driven the growth of credit card on UPI over the last 12 months, the report said.
According to data from the Reserve Bank of India, there are around 320 million merchant acceptance touch points for UPI payments in April, far higher than the nine million point of sale terminals available for credit card payments.
The adoption of credit card on UPI was the highest in the 26-40 age group. Overall, the 25-60 age group comprised 91% of credit card on UPI users. On average, these users spend more than `22,000 every month on these transactions. The average number of transactions using a credit card on UPI is 21 per month, which is four times that of a traditional physical credit card.
Accordng to the report, the average transaction size for ‘Credit Cards on UPI’ users is `1,125, significantly lower than traditional credit card transactions, which average around `4,000.
Spends on grocery, kirana stores, apparel and electronics, food and dining comprised 55% of transactions, The remaining 45% of expenses are spread across electronic commerce, travel, government services, fuel, pharmacies, the data showed.
“Being a frontrunner in issuing Rupay credit cards, we at Kiwi are thrilled to see the swift adoption and usage of Rupay’s ‘Credit Cards on UPI,’ especially for essential spending,” Mohit Bedi, co-founder, Kiwi said. “The concept of virtual credit cards has picked up exponentially. Nearly 20 out of every 100 credit cards being issued in the country are virtual credit cards.”