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In 2022, the Reserve Bank of India (RBI) issued a notice to link credit cards to UPI. This decision was made to make digital payments more accessible and convenient. The result?
According to a report by Worldline, digital payments in India stood at 87.92 billion transactions worth ₹149.5 trillion in 2022 alone. It also registered a 91% increase in transaction volume and around 76% increase in transaction value in 2022 compared to 2021.
Linking credit cards to UPI is a revolutionary innovation for seamless payments and better financial convenience. It undoubtedly enhances the way we shop, pay bills, and manage finances. But that’s not it. There are several benefits of linking credit cards to UPI.
In this article, we will discuss the benefits of linking credit cards with UPI. Also, we will learn how you can link credit cards to UPI. So, let us dive right in!
Linking credit cards with UPI offers a multitude of advantages for users. Among the significant benefits are:
Imagine you are out shopping, eagerly making purchases, only to realise you have left your wallet at home. To make things worse, you can't even recall those lengthy card numbers. But if you've linked your credit cards to UPI, you can easily make instant payments, pay bills, transfer funds using your smartphone, and save yourself in such situations.
With a vast network of merchants accepting UPI, you can make hassle-free payments anytime, anywhere. And this is how linking credit cards to UPI makes cashless transactions efficient, seamless and convenient.
Linking credit cards to UPI provides extra protection for your transactions. How? UPI uses a multi-layered security framework and multi-factor authentication systems like MPIN and biometrics. These minimise the risk of fraudulent activities and unauthorised access to your credit card information.
Additionally, UPI includes advanced encryption and tokenisation techniques. These protect your sensitive financial information from being compromised, thereby ensuring the safety of your money from fraudsters and cybercriminals.
Another benefit of linking credit cards to UPI is that it gives you complete control over your finances. It ensures that you get real-time notifications for your credit card transactions. These notifications include transaction details and payment reminders.
You can use it to track your spending and identify fraud. While checking your expenses, you can also quickly monitor your credit card balance.
Well, who does not love to earn rewards? Credit card issuers provide incentives for UPI transactions made using linked credit cards. These rewards can vary from exclusive deals and loyalty points to discounts and cashback on the purchase type.
You can earn anywhere from 1% to 5% of the transaction value on different spending categories like entertainment, shopping, dining, etc. This is another way how you can use your credit card linked to UPI to enhance your overall transactional worth by saving some money.
Any UPI-enabled app can make transactions regardless of your credit card issuer, making UPI an interoperable platform. By linking credit cards to UPI, you can transfer money to others simply by using their UPI ID. This way, you don’t have to go through the hassle of exchanging bank account information to send or receive funds.
Also, you can set up recurring payments for paying utility bills and loan EMIs. It automatically pays your bills and EMIs on time, saving you money by avoiding late charges. From splitting a bill to transferring a sum, linking credit cards to UPI provides an efficient solution for peer-to-peer transactions.
One of the impressive benefits of linking credit cards with UPI is that it can help you to improve your credit score. When you use a credit card linked with UPI, you can make not only bigger expenses but also petty ones.
Thereby you have more chances to show that you handle credit responsibly and improve your credit score. And when you have a better credit score, you can get higher credit limits or other types of loans easily in the future.
Credit cards linked with UPI are more cost-effective than other payment methods. This is because the need for additional cess in the form of payment gateway charges and processing fees is eliminated using UPI transactions.
Additionally, you can contribute to a greener and more eco-friendly earth by linking credit cards to UPI. UPI transactions are paperless, thus eliminating the need for physical receipts and bills. As a result, it reduces your carbon footprint, and you can also save trees.
Linking credit cards to UPI roughly follows the below steps in every UPI platform:
#1. Open your preferred UPI application on your smartphone.
#2. Tap the “Link Bank Account” or “Add Bank Account” option.
#3. Choose “Credit Card” as the account type.
#4. Enter your credit card details in the appropriate fields.
#5. Enter your UPI PIN.
#6. Tap on “Link Account.”
Upon the credit card UPI linkage, you can start making payments. To make a payment, you need to open your UPI app and enter the recipient’s UPI ID or mobile number. Then enter the transaction amount and select your credit card from the list of payment options as your payment method. Finally, tap on “Pay” to complete the transaction.
Linking credit cards with UPI makes your life easier. With a single tap on your phone, you can conveniently settle pending payments and bills from the comfort of your home.
To avail yourself of these advantages, you must have a credit card. If you're looking to get one, turn to Tata Capital. Our credit card rewards and cashback offers further increase the benefit of linking UPI with credit cards.
So, head to our website or contact our customer representative team today to get a credit card and enjoy the benefits of linking credit cards to UPI.
Policies, Codes & Other Documents