Fintech company Kiwi has recently introduced an interest-refund EMI option on Unified Payments Interface (UPI), allowing customers to pay for high-cost items in installments and receive a portion or the full interest back as cashback.

Timing of the Introduction

This new feature was rolled out right before the Diwali festival season, when spending on various categories such as electronics, jewelry, home appliances, and travel typically surges. Data from 2024 shows that festive spending in India saw significant growth, with e-commerce playing a crucial role during the Diwali period. Many high-value purchases were made using EMI or buy-later schemes.

Kiwi’s Product Offering

Unlike traditional EMI plans that often come with added interest charges, Kiwi aims to ease financial strain by offering interest refunds. With a three-month EMI period, customers can get 100% of the interest paid back as cashback, while six- and nine-month EMIs provide 50% cashback.

To use this feature, users can scan a QR code or make an online payment through the Kiwi app, select ‘Pay with EMI,’ authenticate via UPI PIN, and receive immediate cashback. There is no need for a physical card, and the service has been designed to ensure transparency and enhance the mobile experience.

Offering EMIs on UPI also helps Kiwi expand access to structured credit beyond conventional credit card users. This move is expected to make large purchases more accessible and provide an alternative to credit card-based EMI options.

Funding Support

Kiwi’s expansion was facilitated by a recent USD 24 million funding round, secured in August 2025 from both new and existing investors. This marked the company’s first fundraising since early 2024 and was led by Vertex Ventures South East Asia & India. The funds will be used to further Kiwi’s growth strategy and product development plans, as well as strengthen its path towards sustainable unit economics.