Pay with reward points on UPI: Everything to know about this new payment feature

In a move that could transform how Indians use their loyalty points, reward-based payment network TWID has launched TWID UPI, a new app that allows users to pay using reward points for online and offline purchases across India. The feature integrates seamlessly with UPI, letting users turn unused loyalty points into real purchasing power.

TWID’s new UPI-enabled app allows users to aggregate, manage, and redeem reward points from multiple banks, brands, and loyalty programs — all in one place. For the first time, customers can combine reward points with UPI payments at checkout, instantly reducing their out-of-pocket expenses.

“By positioning ‘Pay with Rewards’ as a natural extension of digital payments, TWID is bridging the gap between loyalty programs and real-world spending,” the company said in a statement.

Every UPI transaction made through the TWID app will also earn users ‘TWID Stars’, a new digital loyalty currency that can be redeemed across a wide network of partner merchants, creating a continuous cycle of rewards.

How the TWID UPI app works

Users can link their reward point accounts from multiple issuers and use them directly while making UPI transactions. The app automatically detects available reward points and allows users to apply them for instant discounts. For example, a user can pay part of a bill through reward points and the rest via a linked bank account — merging convenience with savings.

TWID has also launched the ‘TWID Stars’ loyalty program, which rewards users with points for every UPI payment made on the app. These TWID Stars can be accumulated and redeemed across a growing merchant ecosystem, further enhancing the payment experience.

App usage and reach

TWID’s reward network currently spans over 1,00,000 online and offline merchants, including Swiggy, JioMart, MakeMyTrip, BookMyShow, MyJio, Ixigo, redBus, and McDonald’s. The company has built integrations with 15 major issuers, such as IndusInd Bank, Yes Bank, BOB Card, SuperCoin, Zillion, Jupiter Jewels, and CRED, giving users access to a reward pool worth over $2.3 billion.

In 2024 alone, TWID enabled the redemption of nearly 3 billion reward points. With the UPI integration, it expects this number to grow rapidly as consumers discover new ways to use loyalty balances for everyday payments.

“TWID has scaled phenomenally well in the online merchant ecosystem with issuers, merchants, and acquirers,” said Amit Koshal, Co-founder & CEO of TWID. “With this launch, we’re extending that convenience to offline merchants too, turning reward points into 365-day savings for everyday payments.”

Backed by Google and Peak XV Partners (Surge), TWID plans to add 5,000 more merchants in 2025, expanding its reach across India. By merging rewards with UPI, TWID aims to redefine loyalty — transforming unused points into a new digital currency for daily spending.