Can Your Everyday UPI Payments Really Earn Cashback? Here's The Truth

New Delhi: It’s 9 AM, and you’re buying your daily cup of chai. Scan, enter PIN, done — UPI has made transactions so seamless that most of us don’t even think twice before using it. Walk down any street in India and you’ll spot QR codes everywhere — from a chaiwala’s cart and your local salon to kirana stores, ice cream vendors, and even mega-retailers. Scanning and paying through UPI has become second nature. 

Launched in 2016, UPI is now the backbone of India’s digital economy. In July 2025 alone, over 19.46 billion transactions were recorded, according to NPCI. What started as a peer-to-peer payment method has now grown into a universal mode of payment, used for everything from daily chai to dinner bills to high-value purchases.

But here’s a question most people never ask: Can your everyday UPI payments actually earn you cashback?

For years, the assumption was simple. UPI = convenience, Credit Cards = rewards. If you wanted cashback, points, or air miles, you needed to swipe plastic. UPI was quick and free, but not rewarding. Until recently.

That changed when the Reserve Bank of India allowed credit cards to be linked with UPI. Suddenly, the convenience of UPI and the benefits of credit cards were brought together. This meant RuPay credit card could now be used everywhere UPI is accepted — from chai stalls to supermarkets — combining convenience with rewards

Credit Card on UPI Explained

Think of it as the best of both worlds. A Credit Card on UPI works just like a regular credit card — you spend first, and clear your bill later.

But instead of swiping or entering card details, you pay directly by scanning UPI QR codes. 

How does this work? Earlier UPI was linked to your savings account, whenever you made a payment, the money was deducted directly from it. With credit card on UPI, the payment is made through credit line. The amount paid will show up in your monthly statement. 

The result? You get seamless and convenient UPI transactions with the benefits and rewards of credit cards.

This innovation has opened up a new conversation: If we already use UPI for everything, why not get rewarded for it too?

Everyday Cashback, Everyday Payments — The Kiwi Example

Fintechs like Kiwi are leading this new wave of innovation. With a RuPay Credit Card issued on Kiwi, users can scan any UPI QR and pay seamlessly — just like they always have — but now with the added benefit of earning real cashback. Every daily spend brings 1.5% real cashback, while premium Kiwi Neon members can earn up to 5% cashback.

What makes Kiwi different is its simplicity and ease of use. The cashback is real money that can be withdrawn into your bank account; there is no complicated point system or complex terms and conditions to redeem the cashback. The card is lifetime free, with no joining or annual fees. And it works everywhere UPI lives — from the corner chai shop to large retailers.

For millions of Indians who love UPI’s convenience but also want the rewards of a credit card, Kiwi combines the best of both worlds. It doesn’t just join the category of Rupay Credit Cards — it sets the benchmark for it.

Why This Matters

For young professionals, it’s about making routine grocery, rent, and commute payments more rewarding. For families, it’s an easy way to maximize value without changing habits.

In short, every QR scan is no longer just about convenience — it’s also about earning something in return.

The Bigger Picture

India is moving towards a future where payments aren’t just digital, but also smart. UPI was the first big leap. Credit Card on UPI are the next. They don’t just make transactions easy — they make them valuable and rewarding.

So, can your everyday UPI payments really earn cashback? The truth is yes. And with a Credit Card for UPI available on Kiwi, the routine act of paying for your daily life — chai, cabs, or electricity — now comes with a real cashback.

In a country where the smallest expenses add up to big monthly outflows, it’s refreshing to know that your payments can finally start giving something back.

Published on: Thursday, September 25, 2025, 04:24 PM IST