In recent years, the Indian digital payment ecosystem has evolved rapidly, bringing innovations that are making our lives simpler and more connected. One such innovation is the integration of the Unified Payments Interface (UPI) with credit cards, including the emergence of some of the best UPI credit cards in the market. As UPI has become a household name in the realm of cashless payments, the concept of UPI credit cards is gaining traction, and it promises to be a game-changer for the Indian consumer. But what exactly are UPI credit cards, how do they work, and what benefits do they bring? Let’s explore the essential details that every Indian consumer should know.
Understanding UPI Credit Cards
UPI credit cards are essentially credit cards that are linked to a consumer’s UPI ID, offering users the ability to make transactions using their credit limit through UPI platforms. Traditionally, UPI was confined to bank accounts and debit cards. However, the Reserve Bank of India (RBI) has broadened the scope, allowing credit card integration with UPI, and opening up new avenues for cashless, credit-based transactions.
This means that users can now conduct credit card transactions via UPI apps like PhonePe, Google Pay, and Paytm without needing to swipe a card or using a POS terminal. Instead, payments can be effortlessly completed by scanning a QR code or entering the merchant’s UPI ID. As the adoption grows, consumers are increasingly looking for the best UPI credit cards that offer optimal benefits and features for this new payment method.
Benefits of UPI Credit Cards
The best UPI credit cards offer consumers advantages like seamless transactions, wide merchant acceptance, and the ability to manage their finances more effectively. There are several reasons why UPI credit cards stand out as a revolutionary payment method:
1. Frictionless payments
UPI credit cards offer unmatched convenience. There’s no need to carry physical cards, worry about security at POS machines, or swipe for transactions. A few taps on your smartphone are all it takes—simply scan, pay, and go.
2. Access to credit, anytime
The ability to leverage your credit line for everyday expenses adds significant flexibility. Whether you’re low on cash or need to delay payment, UPI credit cards let you settle transactions later, just like a regular credit card.
3. Rewarding experience
UPI credit cards maintain the rewards system associated with traditional credit cards, including points, cashback, and exclusive offers. Now, users can earn rewards while enjoying the simplicity of UPI payments, maximizing both convenience and benefits.
4. Universal acceptance
The widespread adoption of UPI in India means that from street vendors to major retail outlets, a vast majority of merchants now accept UPI payments. With UPI credit cards, you can use your credit line across a broader range of merchants than ever before.
5. Robust security
UPI’s robust security framework, backed by the Reserve Bank of India (RBI), ensures that credit card transactions are encrypted and verified through multi-factor authentication. This enhanced security reduces the risk of fraud, offering consumers a safer payment option.
How to use UPI Credit Cards
Using a UPI credit card involves a straightforward two-step process:
1. Linking your credit card to UPI
- Open your preferred UPI app.
- Navigate to the “Link Credit Card” option.
- Select your card issuer and input your card details.
- Set a unique UPI PIN for your credit card.
- Confirm the linkage, and you’re all set.
2. Making payments with UPI Credit Card
- Open the UPI app, and choose the “Send Money” option.
- Input the merchant’s UPI ID or scan their QR code.
- Enter the amount and select “Credit Card” as the payment method.
- Complete the transaction by entering your UPI PIN.
UPI credit cards are supported by major platforms like Google Pay, PhonePe, and Paytm, and more banks are expected to join this growing trend.
Everyday applications of UPI Credit Cards
The versatility of UPI credit cards opens up numerous use cases:
- Daily Purchases: Whether it is groceries or fuel, UPI credit cards make small, everyday expenses easier to manage.
- Online Shopping: Use your UPI-linked credit card on websites that accept UPI payments, all while earning rewards.
- Bill Payments: From utilities to mobile recharges, pay all your bills seamlessly.
- Travel and Bookings: For flights, trains, or hotel stays, UPI credit cards simplify bookings while you rack up rewards.
Things to Keep in Mind
While UPI credit cards offer a range of benefits, there are a few key points to be aware of:
1. Interest rates and charges
Like traditional credit cards, UPI credit card transactions are subject to interest if the outstanding amount is not cleared within the due date. Be mindful of interest rates and late payment fees.
2. Credit limits
As with any credit card, your spending is capped at your credit limit. Monitor your usage to avoid over-expenditure and maintain financial discipline.
3. Merchant acceptance
Although UPI is widely accepted, not all merchants may support credit card payments via UPI. Always confirm whether credit-based UPI transactions are accepted before proceeding.
4. Transaction limits
UPI credit card transactions typically have daily limits, often around ₹1 lakh, which may affect large purchases. These limits can vary based on your bank, credit profile, and the UPI app used. For specific limit information, check with your card issuer or UPI app settings.
UPI Credit Cards vs. Traditional Credit Cards
Here’s a quick snapshot of how UPI credit cards stack up against traditional credit cards:
Popular UPI-Enabled RuPay Credit Cards in India
Here are some of the popular UPI credit cards in India offering a blend of convenience and rewards.
HDFC Bank UPI RuPay Credit Card
Experience seamless credit and UPI convenience with HDFC Bank’s UPI RuPay Credit Card. Link the virtual-only card to UPI apps and enjoy rewards on daily expenses. Earn 3% cash points on groceries, dining, and PayZapp transactions, and 1-2% on utility and other spends. Note: Maximum cash points capped monthly.
Axis Bank Fibe RuPay Platinum Credit Card
Axis Bank offers a numberless RuPay Platinum credit card with no joining or annual fees. Enjoy cashback on food, entertainment, and local commutes with 3% cashback. Includes lounge access and dining benefits.
ICICI Bank Coral RuPay Credit Card
Earn up to 2 reward points per ₹100 spent, with varying rates for different spending categories. Get complimentary airport and railway lounge access. Milestone rewards for high annual spends and discounts on movie tickets make it a rewarding option for frequent spenders.
SBI IRCTC RuPay Card
SBI’s IRCTC RuPay card is tailored for railway enthusiasts. Earn rewards on IRCTC bookings and retail purchases. Fuel surcharge waiver and travel-related benefits included.
HPCL Energie RuPay BOBCARD
HPCL Energie RuPay BOBCARD provides up to 5% savings on fuel at HPCL outlets, 10 reward points on utility and grocery spends, and access to domestic lounges. Also, enjoy movie ticket discounts and a generous joining bonus.
Yes Bank RuPay Credit Card
Earn reward points on travel, dining, and other categories. Preferential foreign currency markup on international spends. Fuel surcharge waiver included. UPI transactions also earn reward points, maximizing benefits.
Kotak League RuPay Credit Card
Earn reward points on spending. Get free PVR tickets or bonus points on reaching spend thresholds. Includes fuel and railway surcharge waivers. It’s an ideal card for UPI payments and everyday expenses.
Note: Features may change over time, so always check with the issuing bank for the most up-to-date information.
Conclusion
UPI credit cards are reshaping how consumers navigate digital payments in India. By combining the flexibility and rewards of credit cards with the simplicity and universal acceptance of UPI, these cards are a powerful new tool for everyday financial management. As more banks roll out UPI-enabled credit cards, the future of seamless, cashless credit payments looks brighter than ever. However, responsible usage is key to fully benefiting from this innovation.
FAQs:
1. What is a UPI credit card, and how does it work?
A UPI credit card is a credit card linked to your UPI ID, allowing you to make online and digital payments. Authorized by the RBI to enhance digital payments, it allows you to pay merchants by scanning QR codes or entering UPI IDs. It works like regular UPI transactions but uses your credit balance instead of your bank account.
2. How can I link my credit card to UPI?
To link your credit card to UPI, open your UPI app (like Google Pay, PhonePe, or Paytm), go to the “Add Credit Card” or “Link Credit Card” option, select your card issuer, and enter your card details. Set a UPI PIN for your credit card, and the card will be linked to your UPI ID.
3. Can I earn rewards or cashback when using UPI credit cards?
Yes, when using a UPI credit card, you can still earn rewards, cashback, or other benefits that are typically associated with credit card transactions, such as points for travel or discounts.
4. What are the benefits of using UPI credit cards?
UPI credit cards offer several benefits, including frictionless payments, the ability to leverage your credit facility for UPI transactions, reward points, enhanced security, and wider merchant acceptance across India.
5. Are there any limits on UPI credit card transactions?
Yes, UPI credit card transactions usually have daily limits, often up to ₹1 lakh per day. The specific limit may vary depending on your bank, credit card, and UPI app.
6. What are the differences between UPI credit cards and traditional credit cards?
While both UPI credit cards and traditional credit cards offer a credit line, UPI credit cards allow you to make payments through the UPI platform, making it easier to pay merchants without using physical cards or POS machines.
7. Which banks offer UPI-enabled credit cards?
Several banks, including HDFC, Axis Bank, and ICICI, now offer the best UPI credit cards compatible with popular UPI platforms.
Source:
https://www.rupay.co.in/rupay-credit-card-on-upi
https://www.hdfcbank.com/personal/pay/cards/credit-cards/hdfc-bank-upi-rupay-credit-card
