The company said early usage has largely been for everyday UPI purchases rather than discretionary, high-value spending, indicating that users are treating the product as a regular payment option rather than a source of large-ticket credit.
India’s UPI ecosystem is increasingly becoming a gateway to formal credit for consumers who have traditionally remained outside the credit-card market, particularly in smaller cities and among self-employed users. As per Kiwi, nearly half of users of Kiwi’s Credit Line on UPI product, Kiwi Postpaid, were new to credit cards in its first month, while 50% were from Tier-II and III cities and a third were self-employed. The shift matters as UPI could make formal credit more accessible to consumers who do not use credit cards, expanding the addressable borrower base beyond metros and salaried users.Kiwi, which launched Kiwi Postpaid in partnership with YES BANK, said the product saw strong early adoption in its first 30 days. Nearly 30 per cent of users were from Gen Z, pointing to demand for digital-first credit products among younger consumers as well.The company said early usage has largely been for everyday UPI purchases rather than discretionary, high-value spending, indicating that users are treating the product as a regular payment option rather than a source of large-ticket credit.Access has also been relatively quick, with nearly 95 per cent of eligible applicants receiving approval for a credit line within two hours, Kiwi said.Siddharth Mehta, Co-Founder and COO, Kiwi, said the early adoption among first-time credit-card users, self-employed professionals and consumers from Tier-II and III cities indicates that bringing credit onto UPI could make formal credit simpler and more relevant for a wider set of consumers.Published on August 11, 2026
