CRED & MobiKwik Integrate RBI’s Digital Rupee

Tiger Global and Peak XV-backed CRED has taken a significant step in India’s digital financial ecosystem by becoming the first fintech platform to enable transactions using the Reserve Bank of India’s (RBI) e₹. This move aligns with RBI’s push towards a cashless economy and digital currency adoption.

The RBI launched the pilot programme for the digital rupee in December 2022, initially allowing only banks to facilitate transactions. However, in April 2024, the central bank extended access to payment firms, paving the way for fintech platforms like CRED to participate in the Central Bank Digital Currency (CBDC) initiative.

How CRED’s e₹ Wallet Works?

CRED’s e-₹ wallet integrates the security of sovereign-backed digital currency with a seamless payment experience, offering:

• Beta access: Initially available to a select group of whitelisted users.
• UPI compatibility: Users can send and receive e₹ to other CBDC wallets and pay UPI-linked bank accounts.
• Transaction limits: Up to ₹10,000 per transfer, with a daily cap of ₹50,000 and a wallet balance limit of ₹1 lakh.
• Zero-cost merchant transactions: Currently, merchants will not incur transaction fees for accepting e-₹ payments.
• Future enhancements: CRED plans to introduce programmable merchant payments, integration with CRED Pay, and PIN-less transactions for amounts under ₹500.

To activate their e-₹ wallet, users must complete a video KYC, after which they can load funds via UPI. The issuance of e-₹ tokens into wallets will be facilitated by YES Bank.

MobiKwik Expands e₹ Wallet Access to All Android Users

Alongside CRED, MobiKwik has also introduced its e₹ wallet, expanding accessibility beyond beta users. The MobiKwik e₹ wallet is now available to all Android users, offering:

• Peer-to-peer (P2P) and peer-to-merchant (P2M) transactions
• Seamless UPI integration for payments by scanning any UPI QR code
• Broader accessibility, making it one of the first payment apps to provide full-fledged access to the CBDC wallet

This development highlights a growing trend of fintech firms embracing digital currency, making transactions smoother and more widely accepted across the digital payments ecosystem.

CRED’s Vision for Digital Currency Adoption

Speaking about the future of e₹ transactions, Kunal Shah, founder of CRED, shared his perspective: “The e₹ wallet is a milestone in India’s financial evolution. With RBI’s support, we’re empowering the creditworthy to shape the future of digital currency in the world’s fastest-growing economy. Our aim is to make e₹ transactions seamless and accelerate its adoption among India’s most creditworthy citizens.”

Competitive Landscape and Challenges

While CRED and MobiKwik have taken an early lead, other major payment firms such as Google Pay, PhonePe (backed by Walmart), and Amazon Pay, are also vying to participate in the RBI’s CBDC initiative as per a news report.

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