Fintech company Kiwi has launched an innovative interest-back EMI feature on UPI payments, allowing users to divide large purchases into easy monthly installments while earning back the interest they pay as cashback.
The company said this is the first model of its kind in India. Under this offering, the interest paid on EMIs will be refunded as cashback, either fully or partially, depending on the repayment tenure. For example, users opting for a three-month EMI will receive 100 per cent cashback on the interest, while six and nine-month tenures will offer 50 per cent cashback on the interest amount.
This launch comes as part of a wider effort to promote credit adoption through real-time payment platforms. According to Kiwi, categories such as smartphones, jewellery, home appliances, and travel are seeing two to three times more demand during the festive season compared to regular months. More than half of these high-value purchases are being made through 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 of Kiwi.
The move follows Kiwi’s recent $24 million Series B funding round led by Vertex Ventures South East Asia and India, with participation from Nexus Venture Partners, Stellaris Venture Partners, and Omidyar Network. The company had earlier raised $13 million in a Series A round in November 2023.
Focusing on expanding credit access through UPI, Kiwi aims to issue one million credit cards over the next two years as it continues to strengthen its presence in the Indian fintech space.
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