The National Payments Corporation of India (NPCI), in collaboration with payment aggregators, has enabled credit card transactions on the UPI platform, a development that is expected to revolutionise the way consumers make payments using the system. Users will have additional alternatives to make UPI payments more easily as a result, which will benefit individuals who favour using a credit card for online purchases. When the most recent update will be accessible in UPI-based apps is currently uncertain.
The most recent choice was made just days after RBI enabled credit cards for RuPay to be used with UPI. According to a Business Today article, BharatPe, Cashfree Payments, Google Pay, Razorpay, Paytm, PayU, and Pine Labs have agreed to allow users to make payments using credit cards, which was previously not an option.
Also, the change will make it easier for consumers to take advantage of credit card incentives and short-term credit benefits.
Currently, only bank accounts, overdraft accounts, and prepaid accounts can be used to conduct transactions by individuals. One won’t need to bring their credit cards with them when travelling anywhere to make purchases now that RuPay credit cards are connected to UPI.
Unified Payments Interface, also known as UPI, is a payment system that enables users to immediately transfer money between bank accounts without the requirement for specific bank account information. In India, it has achieved enormous success, with the platform seeing more than 8 billion transactions each month. The most recent action is anticipated to increase digital payments in India.
since credit card transactions can be utilised for a larger variety of transactions and are frequently associated with higher ticket quantities. This will provide user choice and freedom when making payments, which is likely to accelerate the adoption of digital payments in the nation.
According to the given source, UPI is used for payments by over 250 million customers and 5 crore merchants. Over 8038.59 million transactions, or Rs 1,299,058.78 crore, were made via UPI in January of this year. The RBI anticipates that the number of transactions will increase by 16 percent over the following four years with the introduction of credit cards.
“One of the few countries that has been effective in promoting innovation through specific rules is India. And after the RBI decided to begin tying RuPay credit cards to UPI, we started giving the top payment aggregators the tools they needed to increase merchant acceptance and consumer awareness in an effort to spur early and broad adoption “Chief of Corporate and Fintech Relationships and Key Initiatives at NPCI, Nalin Bansal, stated.
ALSO READ: Unlock UPI credit card transactions with Google Pay and Paytm