Due to the lack of a clear revenue model on UPI—especially with the government reaffirming that no merchant discount rate (MDR) will be charged—fintech companies are shifting their focus toward RuPay credit cards linked with UPI. Unlike standard UPI transactions, RuPay credit card transactions allow banks and fintechs to earn revenue through MDR, making them a more financially sustainable option. As a result, several fintech startups like Jupiter, Scapia, and Slice are launching or expanding offerings in this space. These RuPay credit cards offer users credit limits, cashback, and the convenience of UPI, while allowing fintechs to monetise their services. The National Payments Corporation of India (NPCI), which operates both UPI and RuPay, is actively promoting this model to balance innovation and monetisation in India’s fast-evolving digital payment ecosystem.
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