The country has also started UPI facility through credit card. However this facility is currently available only for RuPay credit card customers.
If you have a RuPay credit card then you can link your credit card to any UPI-enabled app and make UPI payments (RuPay Credit Card UPI) directly from the credit card.
New Delhi. There is no doubt that Unified Payments Interface (UPI) has made digital payments much easier. With UPI you are able to send money to each other’s account in real time. In India, UPI had more than seven billion transactions in September 2023.
Keeping this in view, the facility of UPI through credit cards has also been started in the country, although this facility is currently available only for RuPay Credit Card customers. If you have a RuPay credit card, then you can link your credit card in any UPI supporting app and make UPI payment directly from the credit card.
Like every coin has two sides, linking credit card with UPI has some advantages and disadvantages that you should be aware of.
What are the benefits of linking to UPI?
Users get enhanced facilities:
Linking credit cards with UPI increases the convenience of using credit cards for small transactions.
If the credit card is linked to UPI, it becomes applicable for any transaction that accepts UPI.
By linking credit cards with UPI, users can earn rewards on all transactions, regardless of the amount paid. In these rewards you get cashback, points and vouchers.
Credit cards generally come with higher credit limits than debit cards. This allows the user to make more important purchases.
What are the disadvantages of linking to UPI?
Propensity to spend more:
Linking credit cards with UPI may increase the risk of overspending. Since UPI is easy to use, users often spend more than their limit. The habit of sending money in one click makes users make impulsive purchases.
Can get trapped in debt trap:
Many credit cards have attractive reward schemes like cashback or travel points, which tempt people to use the credit card for UPI transactions.
In this way, a user spends more than his limit and gets trapped in debt if the bill is not paid because if the bill is not paid on time, the user has to pay the bill with higher interest.