Credit Card vs UPI vs Mobile Banking app: Contactless payments are expected to grow rapidly after the central bank approved payment of up to Rs 5,000 under the ‘Tap and Go’ feature this year by the Reserve Bank of India (RBI). . This can be done through credit card, UPI and mobile banking apps. In such a situation, the biggest problem facing the users is that which of these three options is better for them. Experts believe that every option has its advantages and disadvantages. Although UPI can be said to be the best shopping among these three.
Credit card payment tedious work
According to Rajesh Desai, CEO and Director of Laira Network India, paying via credit card is very tedious compared to UPI or mobile wallets (banking apps). A lot of time is spent swiping cards at the counter or filling up card details during online transactions.
Payment through mobile application is fast and secure. It is cheaper for traders to take payments through mobile apps as the point of sale (POS) cost is saved. However, despite this, the lack of interoperability is its biggest disorder.
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No need to add benefit to UPI
Compared to these two options, UPI Payments is easier, faster and safer. It is easy to transfer money from one bank account to another bank account. Instead of installing many apps, UPI brings many bank accounts on one platform. There is no need to add a beneficiary to make payments from the UPI. Transaction charge is charged on payment by credit card but no such fee is charged on UPI payments.
More debit cards than credit cards in the country
Anand Kumar Bajaj, Founder, MD and CEO of PayNearby believes that all contactless payment options have their benefits. At present there are around 6 crore credit cards in the country while 86 crore are debit cards. UPI provides services on a debit card basis. UPI is an easy medium to pay person to person and business to person. Mobile banking app is the app of a particular bank, on which they get many benefits without going to the bank branch or going to the ATM.
Most banks have provided payment facility through UPI as well as Bharat QR Code on their mobile banking app. Google Pay, Amazon Pay PhonePe, Paytm and WhatsApp Pay have given UPI facility on their mobile apps, due to which micropayments got a boost. Credit cards were still in the form of physical cards, but now with the facility of tokenization, it has also become available on NFC mobile and India is becoming available on QR code.
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