Due to the lack of a clear revenue model on UPI—especially with the government reaffirming that no merchant discount rate (MDR) will be charged—fintech companies are shifting their focus toward RuPay credit cards linked with UPI. Unlike standard UPI transactions, RuPay credit card transactions allow banks and fintechs to earn revenue through MDR, making them a more financially sustainable option. As a result, several fintech startups like Jupiter, Scapia, and Slice are launching or expanding offerings in this space. These RuPay credit cards offer users credit limits, cashback, and the convenience of UPI, while allowing fintechs to monetise their services. The National Payments Corporation of India (NPCI), which operates both UPI and RuPay, is actively promoting this model to balance innovation and monetisation in India’s fast-evolving digital payment ecosystem.
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Fintechs Pivot to RuPay Credit Cards Amid UPI Monetisation Challenges
Due to the lack of a clear revenue model on UPI—especially with the government reaffirming that no merchant discount rate (MDR) will be charged—fintech companies are shifting their focus toward RuPay credit cards linked with UPI. Unlike standard UPI transactions, RuPay credit card transactions allow banks and fintechs to earn revenue through MDR, making them a more financially sustainable option. As a result, several fintech startups like Jupiter, Scapia, and Slice are launching or expanding offerings in this space. These RuPay credit cards offer users credit limits, cashback, and the convenience of UPI, while allowing fintechs to monetise their services. The National Payments Corporation of India (NPCI), which operates both UPI and RuPay, is actively promoting this model to balance innovation and monetisation in India’s fast-evolving digital payment ecosystem.
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
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