Unlock a world of seamless payments with just a few taps! Say goodbye to old UPI as the RBI revolutionizes the game by allowing the linking of credit cards to UPI, bridging the gap between convenience and credit. Would you believe us if we told you that you can make UPI payments through credit cards?
UPI is a convenient payment method, but until recently, it only worked with savings accounts and debit cards. With the growing popularity of UPI, the Reserve Bank of India (RBI) recently announced that RuPay credit cards can now be linked to UPI. This allows users to make payments with their credit cards, just like they would with their debit cards.
Linking credit cards to UPI can be a convenient way to make digital payments on credit without having to pay upfront, whether for shopping online, paying bills, or sending money to friends and family.
In this blog, we’ll walk you through the steps to link your credit card to UPI, so you can start using UPI on credit right away!
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What are the benefits of linking credit cards to UPI for customers?
Linking a credit card to UPI offers several benefits to users. First of all, UPI makes it convenient to make payments using our mobile phones rather than carrying actual cards or going to bank offices. However, prior to this, UPI could only be linked to savings or current accounts.
With the recent RBI announcement allowing RuPay credit cards to be linked with UPI, consumers can now use the short-term credit facility offered by their credit cards to make UPI transactions. This eliminates the need to transfer funds from their savings account or carry a physical card. It also eliminates the risk of card skimming at POS terminals or card loss.
Credit card payments on UPI: Now on Cashfree!
Prerequisites for Linking a Credit Card to UPI
Before we get started on how to link a credit card to UPI, it’s important to keep the following handy-
- Download a UPI-enabled app on your smartphone. Some popular UPI apps in India are Google Pay, PhonePe, and Paytm.
- An active credit card that you wish to link to UPI.
How do I link a Credit Card to UPI?
Now, let’s take a look at the steps to link your credit card to UPI:
- Register Bank Account: To get started, register your bank account on the UPI app.
- Link Credit Card to UPI: Go to the ‘My Profile’ section and look for the option to add a new payment method. Depending on the app you use, it can be – ‘Add Bank Account’ or ‘Link Card’.
For eg:
- On Google Pay: Select ‘Bank Accounts’ > ‘Add a Debit/Credit Card’ > ‘Enter card details’.
- On PhonePe: Select ‘Payments Instruments’ > ‘View All Payment Instruments’ > ‘Add Card’.
- Enter Credit Card Details: You will need to enter your credit card details like credit card number, name, expiration date and the CVV code (the 3-digit security code on the back of your card)
- Verify your Card: After entering your credit card details, you will need to verify them by providing the One-Time Password (OTP) sent to your registered mobile number.
Your credit card has been linked to UPI. You can now use your credit card to make payments using UPI.
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Challenges of linking a credit card to UPI
Linking credit cards with UPI has made it very convenient for users, but it also poses a risk of overspending if not monitored. Keeping track of numerous UPI transactions made through credit cards can be challenging, potentially leading to larger credit card bills with finance charges if not promptly paid. It’s crucial for consumers to monitor their spending and only spend within their means.
