Punjab National Bank (PNB) has partnered with Kiwi to introduce credit-enabled UPI payments for its 180 million customers, marking a significant step in expanding digital credit access in India.
Key Highlights of the Partnership
- Launch of PNB Kiwi Credit Card on the RuPay network
- Enables credit-based payments via UPI
- Offers fully digital onboarding
- Provides cashback benefits (0.5% to 1.5%) on online transactions
This initiative aims to deliver a seamless and frictionless digital credit experience to users.
What is Credit-Enabled UPI?
Traditionally, UPI payments are linked to bank accounts (debit-based). With this innovation:
- Users can make UPI payments using credit cards
- Transactions can be paid later, similar to a credit card
- Enhances financial flexibility for everyday spending
Focus on Financial Inclusion
The partnership is particularly significant for:
- Semi-urban and rural areas, where PNB has a strong presence
- Over 60% of PNB’s 10,000+ branches are located in these regions
This will help:
- Expand formal credit access
- Bring more users into the digital financial ecosystem
- Support small businesses and households
Growing Importance of UPI
India is witnessing rapid growth in digital payments, driven by the National Payments Corporation of India through UPI.
- UPI has become the backbone of digital transactions in India
- Integration with credit cards is the next phase of innovation
Official Statement
PNB Executive Director Bibhu Prasad Mahapatra highlighted that the partnership will:
- Enhance financial flexibility
- Support daily spending needs
- Strengthen adoption of RuPay credit cards
Conclusion
The collaboration between Punjab National Bank and Kiwi marks a major step towards integrating credit with digital payments. By enabling credit-based UPI transactions, the initiative is expected to boost financial inclusion, digital adoption, and access to formal credit, especially in underserved regions of India.