Fintech platform Rio has teamed up with Yes Bank and National Payments Corporation of India (NPCI) to launch a co-branded credit card – the YES Bank Rio RuPay Credit Card. This card streamlines transactions by combining credit advantages with UPI, enabling users to make purchases at more than 100 million merchant locations across the country.
With a credit limit of up to Rs 5 lakh, personalized rewards, and exclusive deals accessible through the Rio app’s “Know Your Offers” feature, this card has piqued considerable interest.
Rio’s app is poised to be among the pioneers in incorporating credit benefits into UPI payments, streamlining everyday transactions and providing users with tailored rewards and unique offers. With UPI transactions forecasted to surge tenfold from 0.5 billion daily transactions, Rio is strategically positioned to facilitate credit services through UPI and serve a user base exceeding 100 million within the next five years.
The fintech firm reported that 60% of applications during the beta launch originated from Tier 2 and Tier 3 cities.
Available to individuals aged 21 to 60, whether employed or self-employed, applicants must meet income qualifications, with a minimum net monthly income of Rs 25,000 or an annual Income Tax Return of Rs 5 lakh. However, existing YES BANK credit cardholders are not eligible.
The credit card comes with lifetime free membership, no joining fee, and an annual renewal fee of Rs 399, which can be waived if certain conditions are met, such as annual retail spends exceed Rs 1.2 lakh.
Riya Bhattacharya, co-founder and CEO of Rio Money, said: “The credit card is just the beginning of how we aim to integrate credit with UPI to transform consumer finance in India. With the launch of credit-on-UPI, we are pioneering a lifestyle product that will redefine cash flow management for 600 million Indians. We expect this market to grow into a $350 billion opportunity, subsuming other credit and payment products.”
Benefits and charges
> The card offers various benefits, but specific transactions may incur charges.
> Utility payments exceeding Rs 15,000 in a month will be subject to a 1% fee plus GST, with a maximum cap of Rs 3,000 per month.
> Education fees paid through third-party apps such as CRED or PhonePe will also carry a 1% fee plus GST starting October 2024, capped at Rs 5,000 per calendar month.
> Fuel transactions above Rs 10,000 per transaction will incur a 1% fee plus GST, capped at Rs 5,000 per month.
For example, a fuel purchase of Rs 20,000 will result in a charge of Rs 200 plus taxes.
> The card has no joining fees and allows for the waiver of annual charges, making it accessible to all. Its integration with UPI caters to the needs of younger users and individuals in semi-urban areas managing daily expenses.
“It’s truly the credit card of choice, linking with UPI and unlocking the true potential of payments. The credit card provides rich benefits in the form of simple cashbacks and a host of exciting offers which are compelling for users for their regular spends,” said Anil Singh, country head, credit cards and merchant acquiring, Yes Bank.
