Mumbai, July 27 -- RuPay credit cards on Unified Payments Interface (UPI) have cracked one of digital payments' trickiest challenges-turning credit cards into an everyday payment tool. But their use for mostly low-value transactions has presented a new challenge for banks and fintech companies: higher engagement without a clear path to profitability.

RuPay credit cards linked to UPI account for nearly four in every 10 credit card transactions, but just about 8% of spending, according to a Bernstein estimate cited by Mint in October 2025. RuPay credit card holders made 750 million transactions worth Rs.63,825.8 crore in April-October 2024-25, showed the latest available Union finance ministry data.

Siddharth Mehta, co-founder of fintech ...