UPI has become India’s default payment method. From ₹20 chai to ₹2,000 groceries, people scan QR codes everywhere. But for a long time, UPI had one limitation. It worked only with savings accounts.
In 2026, that has changed. Now users can scan UPI QR codes and pay using credit cards. This shift is driving strong demand for AU Small Finance Bank credit cards that support UPI payments.
Credit Meets UPI
The key enabler behind credit card payments on UPI is RuPay.
Only RuPay credit cards can be linked to UPI. AU Small Finance Bank issues RuPay credit cards, making them compatible with this new payment flow. AU Small Finance Bank also issues RuPay credit cards in partnership with Kiwi, enabling credit card payments through UPI through Kiwi app.
These cards enable users to scan UPI QR codes and pay using credit via the Kiwi app.
This allows users to:
- Pay via UPI using credit
- Avoid dipping into their bank balance
- Move daily expenses to their billing cycle
For many users, this single change makes credit cards useful for everyday spending.
Why AU Small Finance Bank Stands Out
AU Small Finance Bank focuses on practical credit usage.
Its RuPay credit cards are designed to work smoothly with UPI-based platforms. This makes AU cards suitable for frequent, small-ticket transactions, not just online shopping or big purchases.
That matters because UPI is used mainly for:
- Local grocery stores
- Vegetable and fruit vendors
- Tea and coffee shops
- Medical stores
- Restaurants and cafés
AU-issued cards fit naturally into this ecosystem.
The Role of Cashback in 2026
In 2026, users expect rewards. But they want them to be simple. Platforms like Kiwi, which offer AU Bank issued RuPay credit cards, solve this problem.
With Kiwi:
- Users earn 1.5% real cashback on eligible offline UPI spends
- Premium users earn up to 5% cashback
- Cashback is real money
- Users can withdraw it directly to their bank account
There are no confusing points or conversions.
This makes AU-backed UPI credit cards far more attractive than traditional debit-based UPI payments, which offer no rewards.
Works Everywhere People Actually Pay
Another reason users prefer AU credit cards on UPI is acceptance.
Payments work at:
- Small local merchants
- Kirana stores
- Dairy shops
- Salons
- Street vendors
- Big brands like DMART, Reliance, Croma, McDonald’s, and Pizza Hut
As long as the merchant accepts UPI and has not disabled credit cards on their QR code, the payment goes through.This universal acceptance drives confidence and repeat usage.
No Fees, No Friction
Cost matters.
AU-issued credit cards available through platforms like Kiwi are:
- Lifetime free
- No joining fee
- No annual fee
Users also get:
- 1% fuel surcharge waiver on transactions between ₹50 and ₹4,000
This makes the card easy to keep and easy to use.
Who Is Choosing These Cards?
The strongest adoption comes from:
- Working professionals
- Freelancers and self-employed users
- Startup employees
- Digitally savvy credit card users
These users already use UPI daily.
They simply want better value from it.
Final Thoughts
In 2025, people are not choosing AU Bank credit cards just because they are credit cards.
They are choosing them because they work with UPI.
AU Small Finance Bank credit cards turn everyday UPI payments into rewarding credit transactions. Combined with simple cashback structures and wide acceptance, they fit perfectly into how India actually pays today.
That is why AU Bank credit cards are becoming the preferred choice for UPI payments in 2025.
