India’s UPI ecosystem is increasingly becoming a gateway to formal credit for consumers who have traditionally remained outside the credit-card market, particularly in smaller cities and among self-employed users. As per Kiwi, nearly half of users of Kiwi’s Credit Line on UPI product, Kiwi Postpaid, were new to credit cards in its first month, while 50% were from Tier-II and III cities and a third were self-employed. The shift matters as UPI could make formal credit more accessible to consumers who do not use credit cards, expanding the addressable borrower base beyond metros and salaried users. Kiwi, which launched Kiwi Postpaid in partnership with YES BANK, said the product saw strong early adoption in its first 30 days. Nearly 30 per cent of users were from Gen Z, pointing to demand for digital-first credit products among younger consumers as well.