What are the benefits of linking credit card with UPI?

In a recent meeting with RBI, it is allowed to link RuPay credit cards with the UPI. The big advantage is that you do not need to carry your RuPay credit card in your pocket. Instead, you can pay through a QR code.

Generally, a PoS (Point of Sale) machine is required for payments by a RuPay credit card. Earlier, you can link your savings or current accounts to the UPI (Unified Payments Interface).

It has excellent features and allows multiple bank accounts in a single mobile application. Unified Payments Interface (UPI) is an instant real-time payment system and more secure. So, now you can add your Rupay credit card to the UPI apps.

It starts with the RuPay credit card, but all Visa and Master credit cards will also offer this later. You can pay by scanning the QR code without entering it into the PoS machine.

How To Link Credit Card With UPI?

It is a very simple process as you link your savings or current accounts in the UPI app. You need a mobile payments application that supports UPI functions. Follow the steps given below to link your RuPay credit card.

Step 1: Install and open the UPI apps. Your mobile number must be registered with your credit card.

Step 2: Tap on ‘Add Bank Account‘. On the next screen, you will find the Credit card option along with banks.

Step 3: Tap on Credit Card, and enter your credit card details. Tap on Continue.

Step 4: You will get an OTP on your registered mobile.

Step 5: Enter OTP, and tap on Continue.

Step 6: On the next screen, create a UPI pin and confirm the same. Tap on Submit.

That’s all, your credit will be linked with the UPI app.

Benefits of Linking Credit Card with UPI

As you know, you can add your credit card to make payments in mobile payment apps. But, you are wondering what benefits linking credit cards with UPI? Whereas we can pay by credit card.

Yes, the difference is that it is not allowed to link to the UPI function. You cannot make payments on any UPI QR by linking a credit card to a mobile payment app. But now, linking credit card UPI means you can pay on any UPI QR, be it PhonePe UPI QR, BharatPe, or GooglePay.

Currently, merchants are not charged for using UPI, but MDR charges are applicable for credit cards. For every credit card transaction, merchants pay a fixed amount to the banks.

How will this move help small Traders?

UniCards Founder and CEO Nitin Gupta said there are two types of merchants – organized and unorganized. “Organized merchants are the ones accepting credit cards and UPI payments. However, a large number of unorganized merchants accept only UPI payments. For them, accepting UPI payments is free, and they will be able to accept UPI payments from a credit card”.

Junio’s Gera also said that the move would greatly benefit small traders who cannot afford expensive POS (point of sale) machines. It will also bring a UPI payment facility for credit card users.

UPI Transaction Volume in India

Announcing the decision last week, RBI Governor Shaktikanta Das said, “UPI has become the most inclusive mode of payment in India.

“Rating agency Icra said UPI-based payment throughput doubled to Rs 84.16 lakh crore in FY22 from Rs 41.04 lakh crore in FY21”.

The UPI platform has 26 crore unique users and five crore merchants. In May 2022 alone, there were about 594 crore transactions that happened and up to Rs 10.4 lakh crore was processed through UPI. Currently, UPI facilitates transactions by linking savings/current accounts of users through debit cards.”

Can I pay bills without a credit card?

You can pay bills without a credit card by linking with UPI-enabled mobile apps.

How to add a credit card with a mobile payments app?

You need to install a mobile payment app on your mobile. Tap on add bank account tab, and add your credit card.

Can I link Visa and Master credit cards with UPI?

Currently, only Rupay credit is allowed, but other credit cards can also be linked with UPI later.

About Bankshala team

We are a dedicated professional team, working closely with each other to provide quality content in the banking and finance sectors. Some editors have been investing in the stock market for almost 15 years and have a lot of experience.

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