Indian fintech companies are changing their game plan. Instead of just focusing on UPI transaction volumes, they are now using payments as a doorway to bigger businesses. Companies like super.money, which is backed by Flipkart, believe that the real money is in lending and commerce. While UPI (Unified Payments Interface) is great for getting people to use an app every day, it does not make much profit by itself. Now, firms are focusing on 'monetisation' (making money from a service) by selling loans and credit cards to their users.

In the past, fintechs used rewards and cashbacks just to get new people to download their apps. Now, they are using these rewards to keep users coming back and to build 'engagement' (regular active use of the app). The goal is to make the app a habit for the customer. Once a user is comfortable using the app for daily scan-and-pay transactions, the company can easily offer them a loan or a credit card. This strategy is now being seen across many new players like Navi, Kiwi, and POP.

Prakash Sikaria, the head of super.money, says that the fintech opportunity in India is much bigger than just payments. His company follows a three-step model. First, they use UPI to talk to customers every day. Second, they use credit products to earn revenue. Third, they offer commerce and insurance to make sure the customer stays with them for a long time. They see cashback not as a cost, but as a way to help users build good financial habits.

One of the most interesting facts is who is using these apps. At super.money, about 40% to 45% of users are getting formal credit for the very first time. This means fintechs are reaching people that traditional banks might have missed. They are also becoming major sellers of 'secured credit cards' (cards backed by a deposit). These products are very popular with Gen Z users, who are young people born after the mid-1990s and prefer digital-first services.

For bank officers, this shift is important to watch. While banks handle the backend of UPI, fintechs are the ones 'owning' the relationship with the younger customer. Over 75% of users on these new platforms are from the younger generation. They want simple apps that do everything in one place. If fintechs succeed in becoming the 'primary app' for all finance needs, they will compete directly with bank branches for personal loans and credit card business.

In the coming months, we should watch how these fintechs manage risk. Since many of their users are first-time borrowers, 'underwriting' (the process of checking if a borrower can pay back) will be the real test. The industry is moving from a 'payments-led' market to a 'credit-led' market. The winners will be the ones who can keep the trust of their users while lending money responsibly. For aspirants looking to join the sector, understanding how to cross-sell financial products on a digital platform is now a vital skill.