In the modern world, making payments has become easier and more secure than ever before. With the advent of digital payment methods such as the Unified Payment Interface (UPI), customers can make payments with ease and convenience.
Talking about UPI payments, the number of transactions made through UPI has been growing rapidly. NPCI reported a massive jump in monthly transaction count as the UPI payments touched 8.7 billion in March, reporting a whopping 60 percent growth. Moreover, in the financial year 2022-23, the platform carried out around 84 billion transactions, amounting to ₹139.09 trillion.
To make UPI payments even easier, the Reserve Bank of India has now enabled the use of credit cards for UPI payments. This means users can now use their RuPay credit cards to make UPI payments. Here’s how to do it.
How to link UPI to your credit card?
Step 1: The first step is to download the BHIM app on your Android or iOS smartphone. This can be done from the Google Play Store or App Store.
Step 2: Once you have downloaded the app, sign up or log in to your account.
Step 3: Once you are logged in, click on the ‘Bank Accounts’ section on the top of the app.
Step 4: In the Bank Accounts section, click on the plus button at the bottom right corner.
Step 5: You will then be asked to select the type of account you want to add. Select the ‘Credit Card’ option.
Step 6: Now, select the credit card issuing bank. Initially, only RuPay credit cards from Indian Bank, Union Bank, and Punjab National Bank can be linked to UPI.
Step 7: The app will show you the eligible credit cards from the particular bank. Select the card you want to use and enter the required details. Your card will be linked.
Banks like HDFC Bank, BoB Financial Services, Canara Bank, Indian Bank, Punjab National Bank, Union Bank of India and Axis Bank have enabled the use of RuPay credit cards with UPI apps like BHIM, MobiKwik, Paytm, Slice and PhonePe.
On the same grounds, NPCI has launched a campaign for its RuPay credit cards, on the Unified Payments Interface. This campaign, in association with the Indian Premier League (IPL), looks to spread consumer awareness on the advantages of having access to credit on UPI.
Expressing her pride in sharing this groundbreaking offering, Praveena Rai, Chief Operating Officer of NPCI, said, “We, at NPCI, are proud to share this path-defining offering of RuPay credit cards on UPI and believe it would play a significant role in India’s credit journey. We have always looked to create innovative products facilitating convenience for better payment systems for the nation.”
The collaboration of credit cards and UPI will likely produce a rise in acceptance levels. UPI's extensive network of asset-light QR codes gives clients more places to use the platform. This is particularly useful for merchants in semi-urban areas, where card point-of-sale terminals are less common.