Super.charged Finance: How Flipkart’s Super.money is Rethinking Payments in India

If you’ve ever made a quick online payment in India, you’ve likely experienced the magic of the Unified Payments Interface (UPI). It’s a game-changer, turning what used to be a tedious, fee-laden process into a seamless, quick transaction. But for fintech companies trying to carve out a slice of this booming digital finance pie, it’s been a bit of a tough gig. For many, the focus has been on volume over profit, and that’s where Flipkart’s fintech arm, Super.money, is aiming to shake things up with a bold new collaboration.

What’s Cooking: The Flipkart and Kotak Mahindra Partnership

In an exciting move, Super.money has teamed up with Kotak Mahindra Bank, one of India’s premier banks, to offer something that could truly change the game: a bundled account that combines UPI payments, savings, and secured credit all in one. It’s called the “3 in 1 Super Account,” and it’s set to launch amid growing interest in better financial services.

Super.money already boasts an impressive 10 million users, and they’re not stopping there. The goal? To issue around two million secured credit cards in the next year, particularly targeting first-time borrowers—about 60% of these cards will go to newcomers in the credit field. If things go according to plan, they hope to reach five million within two years.

The Current State of Digital Payments in India

India’s UPI system, created with government backing, has quickly become a household name, processing an astonishing 19 billion transactions a month. That sounds great, right? But here’s the catch: because of how the system is structured, fintech companies find it exceptionally hard to monetize their services. With regulatory restrictions preventing the typical merchant fees that fund perks and rewards, these companies have had to rethink how they operate.

Prakash Sikaria, the CEO of Super.money, says it best: “We do UPI not to solve the pure payment use case. We do UPI to build an interesting cross-financial services play where we are acquiring and retaining customers with the UPI.”

So, what does that mean for everyday people like you and me? It means that while we enjoy the convenience of instant payments, the fintech landscape is evolving to create opportunities for users to reap real benefits like savings and credit access.

The Business Model: Profitable Innovation

Launched in June 2024, Super.money is a relative newcomer in the fintech sector but is already making waves. With current monthly revenues at approximately $3 million, their annualized run rate is around $36 million. The revenue mix is noteworthy: 80% of their earnings come from personal loans, 10% from credit cards, and the remaining 10% from other payment-related services.

What’s fascinating is their strategy for making money in a low-fee environment. Super.money hinges its business model on two main engines: financial services, including loans and cards, and e-commerce integration. Sikaria envisions blending a “Klarna-style” installment payment system into their commerce features, allowing consumers to buy now and pay later within the Super.money ecosystem.

Creating Access: The 3-in-1 Super Account

The essence of this partnership is encapsulated in the 3-in-1 Super Account. Once you make a minimum fixed deposit of ₹1,000 (or about $11), you not only earn interest but also receive cashback on transactions. Moreover, a UPI-on-credit feature allows a line of credit that doesn’t require proof of income. This is especially vital in a country like India, where many young people and newcomers to credit find it hard to navigate the traditional banking system.

Sikaria emphasized the decision to anchor the offering around secured cards as a way to fit into India’s fee-free UPI landscape while still offering incentives. Such a strategy offers potential customers real value—something many UPI services have lacked thus far.

Building a Retail Bank from the Ground Up

While Super.money’s alliance with Kotak Mahindra Bank represents a big leap into mainstream banking, it’s not the only arrow in their quiver. Previously, Super.money collaborated with Utkarsh Small Finance Bank specifically to issue secured cards. This multi-pronged approach not only diversifies their offerings but also greatly enhances customer engagement.

But there’s more; Super.money has recently partnered with another player—SoftBank-backed Juspay—to roll out a one-click checkout feature for online merchants. This tool is already being employed by around 1,000 merchants, covering a broad spectrum of businesses, especially direct-to-consumer brands.

The Road Ahead: Growth and Funding Needs

Despite this promising framework, the road isn’t entirely smooth. Flipkart has already invested approximately $50 million into Super.money, but as the business scales, they’re looking to raise additional funds—potentially from external investors. Sikaria shared that they’re not solely relying on Flipkart for future investments and are catching the interest of many sources.

What’s particularly interesting is that, even as they’re eyeing expansion, they’re consciously focusing on a niche market—about 10 to 30 million users rather than the vast user base dominated by rivals like Google Pay or PhonePe. This laser-focused strategy aims to develop a sustainable, profitable growth model rather than just chasing transactions.

The Takeaway: What This Means for You

So why should you care about Super.money and their innovative approach to digital payments? This partnership could redefine how average folks like us engage in financial services. Instead of mere transactions, we might soon see offerings that allow us to save, spend wisely, and build credit—all rolled into one user-friendly platform.

Imagine being able to manage your savings, handle immediate payments, and establish credit all from your smartphone, without the burdensome fees that have historically plagued financial systems. It’s the kind of radical shift that could empower consumers, particularly youngsters entering the credit landscape for the first time.

In a world where information is power, initiatives like Super.money can help democratize access to financial services, especially in a rapidly digitizing economy like India. As digital finance continues to evolve, the students, professionals, and families of tomorrow will benefit from a system designed to cater to their needs—not just those of the banks or fintech giants.

In many ways, this isn’t just a story about fintech innovation—it’s a reflection of how technology can better serve our financial lives. And as it unfolds, it’ll be interesting to see how consumers react to these changes, shaping the future of how we think about money. So keep an eye on Super.money; they might just be the spark that ignites a financial revolution.