Kiwi launches ‘Interest-Back EMIs’ to make UPI purchases more flexible

Fintech startup Kiwi has announced ‘Interest-Back EMIs (Equated Monthly Instalments) on UPI (Unified Payments Interface)’ that allows consumers to split big-ticket purchases into easy instalments and earn back the interest paid as cashback.

With this feature, a 3-month EMI comes with 100% cashback on interest, making it effectively interest-free, while 6 and 9-month EMIs offer 50% cashback on the interest amount.

How the feature works

“Customers can pay at any UPI merchant by simply scanning a QR (code) or making an online payment, select “Pay with EMI” in the Kiwi app, view charges upfront, authenticate with their UPI PIN, and instantly receive cashback on the interest portion. This eliminates the need for a physical card, ensures transparency, and delivers a fully mobile-first experience,” Kiwi said.

“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, Kiwi.

Expanding UPI’s role in big-ticket purchases

“UPI has so far been about everyday convenience—chai, cab rides, daily essentials. With this launch, UPI steps into big-ticket affordability, an area once dominated by credit cards. Backed by NPCI’s (National Payments Corporation of India) framework, we see this as the next evolution in digital credit—simple, inclusive and accessible to millions,” he said.

“EMI on UPI has become a key enabler by expanding affordability to millions of Indians who were earlier restricted to credit card-based EMI options. UPI today reaches more than 40 million merchants across India, from metros to smaller towns, but has largely been associated with low-value daily spends,” Kiwi, which has already issued more than 2 lakh ‘RuPay Credit Cards’, said.

Festive demand and affordability at scale

“By bringing EMIs onto UPI, Kiwi is unlocking affordability at scale and enabling structured credit access for first-time credit users as well as seasoned shoppers. This marks a major shift, taking UPI from everyday convenience into the domain of high-ticket transactions,” it said.

“Festivals in India are synonymous with high-value shopping across categories such as gold, gadgets, home appliances, travel and home refurbishments. In 2024, overall festive spending in India crossed ₹3.5 lakh crore, with e-commerce alone contributing nearly ₹90000 crore during Diwali week,” Kiwi said.

“Categories like smartphones, jewellery, appliances and travel see 2x–3x growth during this period compared to non-festive months, and more than half of these big-ticket purchases are made using EMI or pay-later options,” it said.

Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.

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