Easy Steps to Use Your Credit Card for UPI Transactions

Credit cards are the new common thing today. And UPI transactions through credit cards is the upcoming new thing. You can now link your credit card to UPI to carry out swift, instant transactions. But before we proceed with how you can link the two and how you can process the payments, let us first see which credit cards and which UPI apps allow this feature.

Banks and Apps that Allow Linking Credit Cards for UPI Transfers

The NPCI or National Payments Corporation of India currently has permitted only RuPay credit cards to be linked with UPI apps. Cards that work on Mastercard and Visa networks are not permitted to link to UPI as of now.

Moreover, only 22 Indian banks are allowed the linking, including Kotak Mahindra Bank, Canara Bank, Axis Bank, BOB Financial Services Ltd, Punjab National Bank, Yes Bank, SBI Cards, ICICI Bank, Union Bank of India, Indian Bank, HDFC Bank, Federal Bank, Saraswat Co-operative Bank Ltd, RBL, ESAF Small Finance Bank, AU SFB, IDFC Bank, Utkarsh SFB, City Union Bank, IndusInd Bank, CSB, and SBM Bank.

There are some particular apps that allow linking RuPay credit cards with UPI. These include GPay, Amazon Pay, Freo, Fino Pay, BHIM PNB, POPClub, SalarySe, Groww, Cred, Supermoney, BharatPe, KreditPe, Union Bank of India (Vyom), FamApp, IDFC First, Airtel Thanks, Tata Neu, PNB one, OneCard, Genwise, Flipkart, Bajaj Finance Ltd., INDMoney, Kotak811, BoB World UPI, BHIM, Slice, Paytm, MobiKwik, Canara Ai1, ICICIiMobile, Jupiter, Samsung Wallet, Navi, Sriram Finance, FreeCharge, PhonePe, Niyo Global, PayZapp, GoKIWI, YesPay Next, Jio Finance, BHIM AU, and Aditya Birla Capital Digital (ABCD).

Credit Cards and UPI

The number of UPI transactions recorded 16.73 billion last December, as per the NPCI. This was an 8% rise from the previous month. This clearly shows the increasing popularity and use of UPI transactions. It is so simple and quick, that more and more people are turning to UPI for even the smallest of payments.

Now that credit card usage is also on the rise, there is the new feature introduced - UPI via credit card. It is easy, hassle-free. Read ahead to know how you can link your credit card with UPI.

You may also like "Linking Credit Cards to UPI for Payments? First Know These RBI Guidelines"

How to Link Credit Card with UPI?

Step 1: You first need the UPI app. If a first-time user, you can start by installing Bharat Interface for Money or BHIM app, thereby marking your first step to digital payments via credit cards.

Step 2: As you open the UPI app, go to 'add payment method'.

Step 3: Now choose the credit card option.

Step 4: Add the required credit card details. This would include CVV, credit card number, expiry date, etc. You receive an OTP on the registered phone number.

Step 5: Now that you have successfully linked the card account, you are now required to create a UPI ID with that credit card.

UPI ID is a unique number - a combination of letters, numbers and symbols. It is through this UPI ID that helps payment and receiving money through UPI. You can check this UPI ID by reaching out to the profile section in the app and selecting 'UPI ID'.

Making Credit Card Payments with a UPI-enabled App

Follow the below-mentioned steps to pay via credit card with a UPI app:

Step 1: You can choose to either scan a QR code, or select from options like 'pay contacts,' 'pay phone number.'

Step 2: Next, you need to enter the UPI ID or choose a related payment option on the app. One may also opt for 'self-transfer' to process money from one account to another.

Step 3: As the QR code/ contact number/ phone number is verified by the app, you can enter the amount to be transferred.

Step 4: Select the particular credit card.

Step 5: Now fill in the PIN.

This processes the payment and the payment is complete.

Final Thoughts

If you are looking forward to using your (RuPay) credit card for UPI transactions, you should also consider factors like financial discipline, good credit score and a strong password/PIN. Beware of scams and frauds to avoid losing money unnecessarily.

This feature brings in many benefits such as convenience, no physical card required, higher spend limits, opportunity to improve credit score, enhanced security, option to track the spending, and much more.

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