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With 75 per cent of all ‘Credit Cards (CC) on UPI’ transactions happening at small merchants, a new report on Thursday said that UPI (Unified Payments Interface) integration has fuelled growth in RuPay credit cards.  

According to the credit-on-UPI platform Kiwi, the adoption of 'Credit Cards on UPI' was highest among young adults below 40.

CC on UPI has become the primary mode of payment, with users spending over Rs 22,000 every month.

The average number of transactions using a CC on UPI is 21 per month, which is four times that of a traditional physical credit card.

"RuPay Credit Cards' market share has grown from 3 per cent in FY23 to 10 per cent in FY24. This success can be largely attributed to UPI's success," said Kiwi Co-founder Mohit Bedi.

"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," he added.

According to the report, the average transaction size for CC on UPI users is Rs 1,125, lower than traditional credit card transactions, which average around Rs 4,000.

Additionally, the report showed that grocery and Kirana stores were frontrunners in embracing CC on UPI (constituting 33 per cent of total usage), followed by apparel and electronics (15 per cent) and food and dining (7 per cent).