CheQ launches UPI payments with RuPay card-linked rewards

CheQ has introduced CheQ UPI, allowing users to pay via UPI QR codes through linked bank accounts or RuPay credit cards. CheQ AU RuPay cardholders can earn 2.5% rewards on UPI transactions, while other RuPay users receive 1.5%, alongside higher rewards at select retail and travel partners.

— Source publishedTue, 25 Aug, 2026, 19:30 IST·First seen Tue, 25 Aug, 2026, 19:37 IST·Source The Hindu BusinessLine

What happened

CheQ launched CheQ UPI in India, enabling UPI QR payments via linked bank accounts and RuPay credit cards. The platform offers additional rewards, including

Key facts

  • 2.5% rewards on all RuPay credit-card UPI transactions for CheQ AU RuPay Credit Card users
  • 12% rewards on CheQ Travel, Amazon, Flipkart, Zomato and BigBasket
  • 5% rewards across 10,000+ other merchants
  • 1.5% rewards for other RuPay credit-card users

Why this matters

CheQ UPI makes the company a more compelling partnership target for banks, RuPay and merchant networks seeking to link card issuance, UPI usage and targeted rewards.

What to watch

  • CheQ UPI monthly active users, UPI transaction frequency, and share of payments funded through RuPay credit cards.
  • Changes to reward caps, exclusions, redemption thresholds, or the effective reward rate after partner offers.
  • AU Small Finance Bank card issuance growth, activation rates, and spend mix following the launch.
  • Evidence that merchant-funded rewards offset platform-funded cashback costs.
  • NPCI or RBI policy changes affecting RuPay credit cards on UPI, interchange, transaction limits, or incentive structures.
  • Matching UPI-linked reward launches by PhonePe, Google Pay, Paytm, Cred, issuer apps, or other card platforms.
  • Add reward caps, category exclusions, and streak-based incentives to control payout costs while preserving habitual use.
  • Use CheQ AU RuPay's 2.5% earn rate to acquire co-branded-card prospects and convert high-frequency UPI users into credit-card customers.
  • Expand merchant-funded boosters in travel, dining, fuel, grocery, and offline chain retail, where CheQ can prove incremental sales to partners.
  • Bundle UPI rewards with credit-score tools, bill-payment reminders, and personalized card recommendations to deepen proprietary user data.
  • Introduce referral and QR-payment campaigns around salaried users, young professionals, and existing card-reward seekers.