Kiwi launches interest-backed EMI on UPI with cashback option (100% cashback on interest):
Fintech firm Kiwi is rolling out an interest-backed EMI option on UPI payments, allowing users to split big-ticket purchases into instalments while earning back the interest paid as cashback.
The company claims this model to be the first of its kind in the country.
It said the interest amount will be refunded as cashback, partially or fully, across different tenures such as three, six and nine months.
For instance, a three-month equated monthly instalment (EMI) comes with 100 per cent cashback on interest, while six and nine-month EMIs offer 50 per cent cashback on interest.
The emphasis on EMI-based UPI payments comes amid efforts to expand credit on real-time payment rails.
According to Kiwi, categories such as smartphones, jewellery, appliances and travel are seeing two to three-fold growth during the festive week compared to non-festive months, with more than half of these big-ticket purchases made using EMI or pay-later options.
“EMI on UPI brings together the convenience of UPI and the flexibility of credit. With interest-back EMIs, we are ensuring that consumers can celebrate without financial strain,” said Mohit Bedi, co-founder and chief business officer (CBO), Kiwi.
The credit-on-UPI focused fintech raised $24 million in a Series B funding round led by Vertex Ventures South East Asia and India in August. The round also saw participation from Nexus Venture Partners, Stellaris Venture Partners and Omidyar Network.
Kiwi had earlier raised $13 million in a Series A funding round in November 2023.
The fintech startup now plans to issue one million credit cards over the next two years.
Fintech firm Kiwi is rolling out an interest-backed EMI option on UPI payments, allowing users to split big-ticket purchases into instalments while earning back the interest paid as cashback.
The company claims this model to be the first of its kind in the country.
It said the interest amount will be refunded as cashback, partially or fully, across different tenures such as three, six and nine months.
For instance, a three-month equated monthly instalment (EMI) comes with 100 per cent cashback on interest, while six and nine-month EMIs offer 50 per cent cashback on interest.
The emphasis on EMI-based UPI payments comes amid efforts to expand credit on real-time payment rails.
According to Kiwi, categories such as smartphones, jewellery, appliances and travel are seeing two to three-fold growth during the festive week compared to non-festive months, with more than half of these big-ticket purchases made using EMI or pay-later options.
“EMI on UPI brings together the convenience of UPI and the flexibility of credit. With interest-back EMIs, we are ensuring that consumers can celebrate without financial strain,” said Mohit Bedi, co-founder and chief business officer (CBO), Kiwi.
The credit-on-UPI focused fintech raised $24 million in a Series B funding round led by Vertex Ventures South East Asia and India in August. The round also saw participation from Nexus Venture Partners, Stellaris Venture Partners and Omidyar Network.
Kiwi had earlier raised $13 million in a Series A funding round in November 2023.
The fintech startup now plans to issue one million credit cards over the next two years.
