UPI or Unified Payments Interface makes it easy for you to go cashless and transact using just your smartphone. You may be wondering if you can make UPI payments through credit cards, which can help you manage your finances with ease. The good news is that you can!
All you need to do is link your credit card to your UPI app and understand how to make a UPI transaction. You can use any UPI app, such as:
- Google Pay
- PayTM
- PhonePe
- Amazon Pay
- BHIM
Regardless of the platform, making UPI payments through a credit card is easy since all these apps follow a similar process. Completing a payment takes only a few minutes on your mobile device – all you need is a stable internet connection. As of now, only RuPay credit cards can be linked to UPI apps in India and around 22 banks offer such credit cards.
These issuers include:
- SBM Bank
- HDFC Bank
- SBI Cards
- ICICI Bank
- Federal Bank
Using Credit Cards for UPI Payments
The process may be broken up into two steps. In the first step, you will need to link your credit card to your UPI app. In the next step, you will have to learn how to make UPI payments through credit cards.
How to Link Your Credit Card to UPI
To link your credit card with your UPI app, you can follow these steps:
- Step 1: Choose a UPI app and download it on your smartphone
- Step 2: Choose the credit card you want to link and keep it within reach
- Step 3: Register yourself on the UPI app using your mobile number
- Step 4: Go to ‘Add payment methods’
- Step 5: Select the ‘Credit card’ option
- Step 6: Share the credit card number, expiry date and CVV
- Step 7: Verify your card with OTP
- Step 8: Create a PIN for verification
This simple process enables you to link your credit card to a UPI app. Now, you can proceed to the next step, which is making the payment.
How to Complete a UPI Payment After Linking Your Credit Card
To make a UPI payment through your credit card, follow the steps given below:
- Open the UPI app on your mobile device
- Scan the QR code or get ready to pay using a mobile number or UPI ID
- Choose the credit card you want to pay with
- Enter the credit card PIN
That’s all! Your payment is done. This is a super easy process if you have linked your credit card to a UPI app. You can easily repeat the same steps whenever you need to make a payment using this method.
Benefits of Making UPI Payments through Credit Cards
There are several benefits of using a credit card for UPI transactions, such as increasing your spending power and completing quicker and safer transactions. Here’s a list of the benefits you can expect:
Multiple Payment Options
UPI offers various payment options and adding your credit card to this list will help you access a wider range of options. The ease of UPI payments enhances the flexibility of credit cards, allowing you to take advantage of features like EMI options as well.
Secure Transactions
UPI and credit cards are both secure modes of transaction and when combined, they provide more safety. This helps restrict any fraudulent activity. The two-way authentication ensures your information is not leaked and prevents fraud.
Real-time Transactions
Both UPI and credit cards provide real-time transaction updates. This is a great way to keep track of your spending. This helps you limit and manage your expenses with ease. In addition, the recipient of payment will not have to wait for hours or days to receive the payment.
Wider Range of Rewards
Since you’re already familiar with the reward structure of your credit card, using it via UPI will allow you to earn rewards in two ways. You’ll receive rewards through both your credit card and your UPI app, allowing you to enjoy benefits from both simultaneously.
Disadvantages of Making UPI Payments through Credit Cards
You should also consider a few drawbacks of making UPI payments via such cards:
- Impulsive purchasing, which can lead to overspending and accumulating of debt
- High interest rates if the credit card bill remains unpaid
- Acceptance may be limited since all merchants and retailers don’t accept UPI payments
If you can keep your spending in check, there are no disadvantages associated with this convenient payment method. Ensure that your credit utilisation ratio remains below 30%, and you’ll be able to use this method seamlessly, solving any payment-related issues efficiently.
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