Credit Card Payment: Till now people can transact only using bank accounts, overdraft accounts and prepaid accounts. Now that RuPay credit cards are linked with UPI, one does not have to carry a credit card while traveling anywhere to make payments.
Credit Card: In a move to change the way people make payments on UPI, the National Payments Corporation of India (NPCI) has enabled credit card transactions on the platform in partnership with payment aggregators. This will give users more options to make UPI payments more seamlessly and help those who prefer to use credit cards for online transactions. In such a situation, now people can do UPI transactions through credit cards as well. Gradually, this option will also start appearing on different UPI payment based apps.
Credit card benefits
The latest decision comes a few days after the RBI extended the RuPay credit card facility to UPI. According to a report, BharatPe, Cashfree Payments, Google Pay, Razorpay, Paytm, PayU and Pine Labs have agreed to allow users to make payments using credit cards, which was not an option till now. The move will also help users avail short-term credit and rewards offered through credit cards.
Transactions
Till now people could transact using bank accounts, overdraft accounts and prepaid accounts only. Now that RuPay credit cards are linked with UPI, one does not have to carry a credit card while traveling anywhere to make payments. UPI or Unified Payments Interface, is a payment system that allows users to transfer money between bank accounts instantly without the need for any bank account details. It has been hugely successful in India, with over 8 billion transactions happening on the platform every month.
Digital Payments
The new move is also expected to boost digital payments in India as credit card transactions are often associated with higher ticket sizes and can be used for a wider range of transactions. This will give users more flexibility and choice when it comes to making payments and is likely to drive adoption of digital payments in the country.
