AU Small Finance Bank said it has entered into a partnership with credit on UPI platform Kiwi to launch a RuPay-powered credit card.

The credit card -- AU KOSMO Credit Card -- aims to deliver a smooth digital payment experience via UPI, said AU Small Finance Bank in a statement.

The credit card offers lifetime free usage, rewards on all spends, fuel surcharge waivers, and scan-and-pay convenience through UPI-enabled merchant QR codes.

AU Small Finance Bank will use this collaboration to enhance its digital credit offerings and strengthen financial inclusion in underbanked areas. The card is designed for new-to-credit users, young professionals, and tech-savvy consumers seeking a digital-first banking experience with seamless UPI integration.

AU Small Finance Bank was founded in 1996 and serves as India's largest small finance bank, focusing on financial inclusion across urban, semi-urban, and rural markets.

Kiwi, which was founded in 2022 by Anup Agrawal, Mohit Bedi and Siddharth Mehta, helps users make UPI payments via RuPay credit cards.

Last month, Kiwi had raised $23 million in its Series B funding round led by Vertex Ventures Southeast Asia & India.