India’s digital payments landscape has witnessed a significant transformation with the advent of free UPI transactions. While this has revolutionized the way money is transferred, fintech companies have been facing challenges in monetizing these transactions. However, Super.money, the fintech arm of Flipkart, is set to change the game by partnering with Kotak Mahindra Bank to introduce a unique offering that combines UPI payments, savings, and secured credit into a single account.
The collaboration aims to issue 2 million secured credit cards over the next year, with a majority targeted towards first-time borrowers. By leveraging the Kotak alliance, Super.money anticipates a 10% increase in revenue next year, paving the way towards profitability by 2026.
India’s UPI system, which processes over 19 billion transactions monthly, has posed challenges for fintech companies due to the absence of merchant fees that typically support reward and credit programs. Super.money’s strategy of integrating secured cards and savings accounts to reintroduce incentives provides a blueprint for building sustainable business models on top of no-fee payment systems.
Prakash Sikaria, the CEO of Super.money, emphasized the importance of using UPI as a tool to acquire and retain customers across various financial services. The fintech app, which currently serves 10 million active users, has been generating a monthly revenue of $3 million, with a projected annualized run rate of $36 million.
The core monetization engines for Super.money revolve around financial services such as personal loans, cards, and deposits, as well as commerce. The company aims to introduce a ‘pay-in-three’ model akin to Klarna within its ecosystem, enabling customers to make purchases and defer payments.
The partnership with Kotak Mahindra Bank grants Super.money access to a robust banking infrastructure, allowing for the launch of a “3 in 1 Super Account” that combines savings, UPI payments, and a secured credit card backed by fixed deposits. Users can open this account by making a fixed deposit of ₹1,000, which offers interest earnings, cashback on transactions, and a UPI-on-credit feature.
Secured cards were chosen as the flagship product due to their compatibility with India’s zero-fee UPI system while still enabling rewards and cashbacks. The partnership with Kotak Mahindra Bank follows a collaboration with Juspay to introduce a one-click checkout experience for online merchants, with plans to expand the network to include more direct-to-consumer brands within the Flipkart group.
As Super.money gears up to issue 200,000 secured cards monthly through its partnership with Kotak, the company is also exploring options for raising additional capital to support its growth trajectory. With a strategic focus on India’s top 10 to 30 million users, Super.money aims to build a profitable secured card franchise that benefits all stakeholders involved.
In conclusion, Super.money’s innovative approach to blending UPI payments, savings, and secured credit underscores its commitment to redefining the fintech landscape in India. With strategic partnerships and a customer-centric focus, the company is poised to drive financial inclusion and profitability in the evolving digital payments ecosystem.
