The company said this partnership aims to help combine the benefits of credit with the ease and ubiquity of UPI. The credit card allows users to make purchases via UPI at over 100 million merchant locations across India and aims to cater to the growing demand for accessible and efficient financial solutions, particularly in tier 2 and tier 3 cities.
“The credit card is just the beginning of how we aim to integrate credit with UPI to transform consumer finance in India. With the launch of credit-on-UPI, we are pioneering a lifestyle product that will redefine cash flow management for 600 million Indians. We expect this market to grow into a $350 billion opportunity, subsuming other credit and payment products,” Riya Bhattacharya, co-founder and CEO of Rio Money, said.
Within a month of its beta launch, Rio received applications from over 244 cities across India, with 60% from tier 2 and tier 3 cities, highlighting the growing demand for high-quality products outside major cities.
Rio’s app is set to become one of the first platforms to integrate credit benefits into UPI payments, simplifying daily transactions while offering users personalized rewards and exclusive deals. As UPI transactions are expected to increase tenfold from 0.5 billion daily transactions, Rio is positioned to be a key enabler of credit products via UPI and will cater to over 100 million users in the next five years.
“It’s truly the credit card of choice, linking with UPI and unlocking the true potential of payments. The credit card provides rich benefits in the form of simple cashbacks and a host of exciting offers which are compelling for users for their regular spends,” said Anil Singh, country head, credit cards and merchant acquiring, Yes Bank.
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With UPI-led credit cards becoming increasingly popular, Rio aims to capture a large share of this burgeoning market. Experts estimate that credit on UPI will outgrow traditional credit products, creating a $1 trillion opportunity by 2030.Currently, UPI is accepted at over 100 million merchant locations compared to only ten million POS machines that support traditional credit cards. UPI led credit is already exhibiting a very high user adoption rate, the largest listed credit card issuer seeing 50% growth quarter-on-quarter.
