PNB and Kiwi Join Forces to Bring RuPay Credit on UPI to 180 Million Customers

Key Insights 
 

• Punjab National Bank has partnered with Kiwi to launch the PNB Kiwi Credit Card on the RuPay network, enabling credit-on-UPI access for its 180 million customers.
   
• According to NPCI Chief Dilip Asbe, around 16% of all credit card spending in India now occurs on RuPay, with nearly half of those transactions made via UPI.

India's Digital Credit Story Takes a Bold New Turn

Punjab National Bank has announced a strategic tie-up with Kiwi, a major credit-on-UPI interface. 

The bank launched the PNB Kiwi Credit Card on the RuPay network, offering fully digital onboarding, seamless UPI integration, and cashback on online transactions ranging from 0.5% to 1.5%. 

Kiwi, a relatively new player in this space, specialises in enabling credit card transactions through QR codes. This marks its first partnership with a public sector bank.

The short-term impact is immediate access to formal credit for millions who previously lacked it. 

However, rolling out a digital credit product to 180 million customers, particularly in rural and semi-urban areas, carries significant operational and credit risk challenges. 

Extending credit to underserved segments could impact PNB's loan quality if underwriting and collections aren't managed carefully.

The Numbers Behind the Momentum

RuPay's rise in India's credit ecosystem has been striking. By November 2025, it held around 38% of credit card transaction volume, a steep jump from just 10% in FY2024. 

Read More : PNB Launches New Type Of Loan

The table below captures this transformation in context.
 

The surge is led by scan-and-pay convenience, with credit usage now extending to over 50 million merchant QR points, far outpacing the roughly 12 million traditional PoS terminals. 

This has shifted credit behaviour from high-value discretionary spending to high-frequency, small-ticket daily transactions. 

What This Means for Everyday Indians

PNB's initiative particularly targets semi-urban and rural areas, where the bank holds a strong presence through its network of over 10,000 branches. 

By enabling QR-based credit transactions, the card bridges the gap between traditional banking and digital finance.

The new credit card carries no joining or annual fees, and users can earn cashback on both UPI and online transactions, making it genuinely accessible for first-time credit users.

For small business owners and daily wage earners, this removes the friction of physical card applications. It creates an on-ramp to formal credit that didn't exist before at this scale.

Also Read : PNB Unveils LUXURA Metal Credit Card

Analysts See Strategic Depth, But Flag Caution

PNB Executive Director Bibhu Prasad Mahapatra stated that India is witnessing a rapid shift towards digital payments led by UPI, and with 60% of PNB's branches in semi-urban and rural regions, the bank is well-positioned to extend formal credit to underserved segments.

Kiwi's co-founder Siddharth Mehta called it a step toward a "secure, flexible, and inclusive credit experience" at the national level.

The UPI credit card market is growing competitive, with many fintechs and banks offering similar cashback products sometimes at higher rates. 

The card's 0.5%–1.5% cashback on online transactions may prove less attractive to reward-conscious consumers.

Analysts suggest PNB must invest in credit education and robust risk monitoring to make this partnership sustainable.

As India pushes toward 90% digital payment penetration by 2029, this collaboration signals how public-sector banks can stay relevant not by competing with fintech but by partnering with it.

Conclusion

The PNB-Kiwi partnership represents more than a product launch; it reflects India's broader push to democratise credit. If executed well, it could redefine how millions of underserved Indians access and experience formal finance for the first time.

FAQs

What is the PNB Kiwi Credit Card? 

The PNB Kiwi Credit Card is a virtual, lifetime-free RuPay credit card launched in collaboration with Punjab National Bank and fintech app Kiwi, designed specifically for UPI-enabled transactions.

What is your review of banking in Punjab National Bank? 

Punjab National Bank (PNB) presents a mixed bag, offering extensive physical reach and a rapidly improving digital suite, notably the PNB ONE app, balanced against inconsistent customer service and legacy inefficiencies.