Kiwi introduces cashback on EMIs via UPI

By Vriti Gothi

Kiwi has launched Interest-Back EMI on UPI, to transform how consumers manage high-value festive spending. The rollout, aligned with the upcoming Diwali season, introduces a breakthrough mechanism that not only allows customers to split larger purchases into manageable instalments but also rewards them by refunding the interest paid as cashback.

Festive shopping in India continues to represent one of the most significant spending cycles in the economy. In 2024, total festive expenditure surpassed $39.42 billion, with eCommerce contributing nearly$1 billion during Diwali week alone. Categories such as smartphones, gold, appliances and travel witnessed demand surges of two to three times above non-festive levels. More than half of these high-ticket purchases were financed through EMI or pay-later solutions, underscoring the growing consumer reliance on flexible credit. While EMIs have eased affordability, the added interest burden has long been a drawback. Kiwi’s Interest-Back EMI directly addresses this challenge by converting the cost of borrowing into instant consumer rewards, thereby enhancing value and driving greater adoption of digital credit.

Through this new proposition, customers opting for a three-month EMI will receive a 100% cashback on interest, effectively making the transaction interest-free, while six- and nine-month tenures offer 50% cashback on interest. Transactions can be completed seamlessly at any UPI merchant whether by scanning a QR code or making an online payment. Consumers simply select “Pay with EMI” within the Kiwi app, review the charges upfront, authenticate using their UPI PIN, and instantly receive cashback on the interest portion. The process eliminates the need for physical cards, ensures full transparency, and delivers a mobile-first experience built on simplicity and trust.

Mohit Bedi, Co-founder and Chief Business Officer, Kiwi, said, “Festivals in India mean high-value shopping whether it is gold, gadgets or home refurbishments. 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. 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 framework, we see this as the next evolution in digital credit: simple, inclusive and accessible to millions.”