From linking to making payments, how to use Credit Cards with UPI

As UPI gains popularity, even credit card users are opting for this platform to make seamless digital payments. Here's how you can link your credit card to UPI and enjoy the benefits of hassle-free transactions.

Unified Payments Interface (UPI) continues to revolutionize digital transactions in India, with a record-breaking 16.73 billion transactions in December 2024. This marks an 8% increase from November's 15.48 billion transactions, according to data released by the National Payments Corporation of India (NPCI).

As UPI gains popularity, even credit card users are opting for this platform to make seamless digital payments. Here's how you can link your credit card to UPI and enjoy the benefits of hassle-free transactions.

How to link a Credit Card with UPI:

Download a UPI app: Begin by installing a UPI-enabled app like Bharat Interface for Money (BHIM). This app will allow you to link your credit card and make digital payments.

Link your Credit Card:

Open the UPI app and navigate to the "Add Payment Method" section.
Select the "Credit Card" option and input your card details, including the credit card number, CVV, and expiry date.
You'll receive a one-time password (OTP) on your registered phone number. Enter this OTP to verify and link your credit card.

Create a UPI ID:

After linking your credit card, create a UPI ID, which will serve as a unique identifier for transactions.
To view or manage your UPI ID, go to the app's profile section and select "UPI ID."

How to make UPI payments using a Credit Card

Choose a payment option:

Scan a QR code or select options like "Pay Phone Number" or "Pay Contacts" in the UPI app.
Alternatively, use the "Self-Transfer" option to transfer money between accounts.

Enter payment details

Once the app verifies the QR code or phone number, input the amount to be transferred.
Select your linked credit card as the payment method.

Complete the payment:

Enter your PIN to authorise the transaction.
The payment will be processed instantly, and you’ll receive a confirmation.

Important points to note

Currently, NPCI permits only RuPay credit cards to be linked with UPI apps. Visa and Mastercard networks are not yet supported.
A total of 22 banks, including SBI, HDFC Bank, ICICI Bank, and Axis Bank, allow RuPay credit card integration with UPI.

Benefits of using UPI for Credit Card payments:

Instant money transfers: Transactions are processed in real-time, making payments quick and convenient.

No additional fees: UPI payments do not incur extra charges, ensuring cost-effective transactions.

Simplified process: There's no need to input credit card details for every transaction, making payments hassle-free.

Contactless transactions: UPI offers a safe and contactless way to use your credit card for payments.