India’s digital payments landscape has undergone a significant transformation with the introduction of the Unified Payments Interface (UPI), which has made instant bank transfers free and ubiquitous. However, this success has left little room for fintech companies to profit, as regulators do not allow merchant fees that typically fund rewards and credit programs. To address this challenge, Super.money, the fintech arm of Flipkart, has partnered with Kotak Mahindra Bank to offer a bundled product that combines UPI payments, savings, and secured credit into a single account.
The partnership aims to issue around 2 million secured credit cards in the next 12 months, with approximately 60% going to first-time borrowers. Super.money expects the Kotak alliance to contribute around 10% of its revenue next year, as it works towards profitability by 2026. The company’s CEO, Prakash Sikaria, noted that the partnership will help Super.money build a viable business model atop the no-fee payment system.
Super.money has already gained significant traction, processing over 200 million transactions per month and generating around $3 million in monthly revenue. The company’s business model rests on two monetization engines: financial services and commerce. Sikaria plans to introduce a “pay-in-three” model on top of commerce, allowing customers to buy now and pay later within the Super.money ecosystem.
The partnership with Kotak Mahindra Bank provides Super.money with access to a large, regulated banking infrastructure. The companies have introduced a “3 in 1 Super Account” that combines a savings account, UPI payments, and a fixed-deposit-backed secured credit card. To open this account, users need to make a fixed deposit of at least ₹1,000 (around $11), which earns interest and offers cashback on every transaction.
Super.money plans to issue around 200,000 secured cards per month under its partnership with Kotak, with the goal of expanding to other banks in the future. The company has received around $50 million in investment from Flipkart and plans to raise additional capital to support its growth. Sikaria noted that Super.money is focusing on India’s top 10 million to 30 million users, rather than competing with mass-market payment players, and aims to build a formidable secured card franchise with a profitable P&L.