Thousands and millions of people in India have now adopted UPI-based applications to conduct payments and facilitate transactions virtually. The QR code can be observed everywhere, be it a cash counter of any franchisee of a fashion brand outlet or a street vendor’s handcraft. The UPI has now become one of the most widely used modes of payment by merchants and customers because it is very convenient for making transactions that assure the safety and security of the transactions so conducted. 

UPI payment is a safe way to transact without cash, since it transfers funds via a Virtual Payment Address or VPA and uses two-factor authorization and merchant authentication for extra security. Previously, UPI payments could only be linked with the savings bank account via a debit card/s. Thus, the funds would be debited from your bank account directly. 

To make UPI payments even more useful and boost the penetration of various credit cards, in June 2022, the Reserve Bank of India permitted linking credit cards and UPI to carry out UPI payments. To ensure the safety and security of the transactions, the central bank has begun with this facility according to phases, making various credit cards among the initial ones to get used to it. Presently, this facility has been extended to numerous credit card providers. 

That being said, linking credit cards with UPI is not a new concept, as many fintech organizations in India are allowing consumers to make payments with the help of credit at any merchant accepting UPI as its payment mode. Also, such UPI app provide a low credit limit and a short-term repayment tenure of around fifteen to twenty days. 

Credit cards function on a deferred payment basis, which implies that you can use the product or service at present and pay for it on a future date without incurring any extra fees or charges. Alongside, credit cards come with attractive interest rates, discounts, and offers for making purchases at specific merchants. 

As many Indian population prefer to opt for UPI rather than swiping debit or credit cards at PoS, this facility to conduct transactions via UPI is an extra benefit. They can avail of credit card advantages such as a greater interest-free duration and reward-related perks on transactions and making simple and convenient purchases with the help of UPI. This integration of UPI and credit cards is promoting an increasing number of users towards using virtual payment modes. 

Conducting bank-to-bank transfers or even payments has never become so easy! Making UPI payments by linking it with credit cards is, without a doubt, a deal maker when making online payments since it gives out the best of both worlds – UPI and credit cards. 

Conclusion:

If you like to maintain discipline in making payments and have complete control over your credit spending, the UPI and credit card linking can lead to a much simpler shopping experience. In case you lack financial discipline, it might become challenging. Thus, to avoid such challenges, you should link your bank account with your debit card to carry out UPI payments.