In a move that is expected to revolutionize the way Indians pay for goods and services, the Indian government has approved the use of UPI on credit cards. The Reserve Bank of India (RBI) issued a circular on June 8, 2022, that allowed banks to link credit cards to UPI.
This means that you will be able to use your credit card to make instant, secure payments through the UPI platform. The approval of UPI on credit cards will make it even easier for Indians to make payments. You will no longer need to carry your credit card with you, or worry about entering your card details online. You can simply use your UPI ID to make payments, just like you would with a debit card.
This is a major step forward for the Indian payments ecosystem. It will make payments more convenient, secure, and accessible for everyone.
How to link your Credit Card to UPI?
To link your credit card to UPI, you’ll need a UPI app on your smartphone, like Google Pay, PhonePe, Paytm, or others. Also, make sure you have a credit card from a bank that supports this feature. Right now, only RuPay credit cards can be linked to UPI, but in the future, other networks like Visa and Mastercard might also offer this option. It’s a convenient way to use your credit card for UPI transactions!
To link your credit card to the UPI app of your choice, follow these easy steps:
- Open the UPI app on your smartphone and go to the payment methods section or select your profile photo.
- Choose ‘Add credit/debit cards’ or ‘Add debit/credit card’ from the menu.
- Enter your credit card number, CVV, and the cardholder’s name.
- If needed, provide other details like the billing address.
- Click on ‘Save’ to proceed.
- You’ll receive an OTP on your registered mobile number. Enter it to verify your card.
- Set a UPI PIN for your credit card, which will be used for authentication during payments.
- Once completed, you’ll receive a confirmation message, indicating your credit card is now linked to UPI.
- To view and manage your linked credit cards, head to the ‘Cards’ section of the UPI app.
Cred enables Rupay credit card payments via UPI
Cred, a popular credit-building app in India, has introduced UPI payments for its users in collaboration with NPCI. Kunal Shah, CRED’s founder, believes that incorporating our second domestic innovation, RuPay, will pave the way for the next phase of growth in India’s digitization journey. “The destination is a world where intent and ability to transact are all that matter, and transactors have true freedom and control over their spending decisions,” he said.
As per the RBI’s recent bulletin published in June 2023, UPI was responsible for more than 75% of the retail digital transactions during FY 2022-23. It is anticipated that this percentage will rise to 90% within the next five years. “The convergence of credit card and UPI is likely to accelerate the increase in the average transaction value as well,” Shah said.
The introduction of UPI payments on Cred is a welcome development for users of the app. It is a more convenient way to make payments, and it can also help users earn rewards on their credit cards.
How to use Cred’s Rupay Credit Card payments via UPI:
- Download the Cred app on your smartphone.
- Open the app and sign in.
- Tap on the “UPI” icon.
- Select “Link Credit Card”.
- Enter your credit card details and verify your identity.
- Set a UPI PIN for your credit card.
Benefits of linking your Credit Card to UPI?
Linking your Credit Card to UPI comes with many benefits for both users and merchants:
- Wider Accessibility: UPI is widely accepted in India, especially by small and medium businesses. When you link your credit card to UPI, you can use it at more places, making digital payments more convenient and secure.
- One-time Linking: You only need to link your credit card once to any UPI app. After this you can use it across various apps without entering your details repeatedly. It saves time and hassle for everyone.
- Contactless Payments: Paying with UPI is contactless, which is preferred in today’s times. You just scan a QR code or enter a VPA, input your UPI PIN, and you’re done, no need to touch any machine or enter a PIN.
- Rewards: Credit cards often offer rewards or cashbacks for purchases. By linking your credit card to UPI, you can earn more rewards and enjoy various offers and discounts available on UPI apps and merchants.
- Flexibility: Credit cards provide the flexibility of paying later for purchases. You can enjoy an interest-free credit period and repay your dues as per your convenience. You can also convert transactions into EMIs if needed.
Way Forward
In conclusion, linking your credit card to UPI brings numerous advantages, as listed above. With a simple one-time linking process, you can experience seamless and secure payments across various UPI apps, saving time and effort.
Moreover, just as CRED makes spending rewarding, Fello makes savings equally rewarding. Fello’s innovative approach to saving and investing transforms the traditional notion of saving into an exciting journey filled with rewards. With opportunities to invest in digital gold and Fello Flo, it empowers users to grow their wealth while enjoying a unique and engaging experience. Do check it out!
