By Mr. Abhay Ray 
Introduction
If you are a regular credit card user and quite accustomed to using UPI (Unified Payments Interface) at the same time it is recommended to link your credit card to the UPI. To be able to do that, the card should be a RuPay card. Most banks currently offer RuPay cards, which enable you to make real time payments via credit cards rather than routing them via bank account. Meanwhile, it is important to remember that UPI payments are growing faster than card payments. Payments via UPI touched 2.34 lakh crore in Oct 2024, reflecting an increase of 37 per cent in the past 1 year, the latest RBI data shows. Now what if you use UPI and get a credit line on it. This is like being able to enjoy the best of both worlds. In other words, this is similar to getting the UPI service activated on the credit card.
Making the most of UPI with your Credit Card – Here’s why it’s a Smart Move,
With UPI becoming the go-to payment method for millions across India, the option to link credit cards to UPI has unlocked a whole new level of convenience and financial flexibility. Traditionally, UPI payments were limited to debit cards and bank accounts. But now, select credit cards especially from networks like RuPay can be linked to popular UPI apps, allowing users to access their credit limit directly through platforms like PhonePe, Google Pay, and Paytm.
This integration not only makes transactions faster and more seamless but also opens the door to added benefits like reward points, interest-free credit periods, and better spending insights. Whether you’re shopping online, paying bills, or making daily purchases at your local store, using your credit card via UPI is quickly becoming a smart financial move.
These are some of the Advantages of using RuPay Credit Cards
- You can use a credit card while you are making instant payments via digital wallet. Typically unified payments interface (UPI) platforms debit money from the bank account directly, whereas RuPay cards allow usage of the likes of Google Pay and PhonePe without having to pay directly from your bank account.
- When you link your credit card to these digital platforms, you bank statement remains uncluttered. Only one transaction – at the time of credit card payment – will reflect it on the bank statement.
- Risk of liability arising out of fraud falls drastically when you use a credit card. When you spot an illegitimate transaction made through your credit card, you can report it immediately to get it stopped. This protection is offered to credit card users.
These are some of the key disadvantages
- Overstretching of expenses: There is often a tendency among users to overspend when you have a credit line. When the money doesn’t go to your bank immediately, you end up overstretching your budget. So, linking all small and big expenses to your credit card may lead to over-spending.
- Too many eggs in one basket: Thanks to technology, payments have become overly convenient and seamless. However, in case of any technical snag or error, things may come to a standstill. Therefore, it is always advisable to spread out your payments via multiple channels or systems.
- Losing out on some benefits: Not every bank’s card offers activation of UPI. So, if you want to capitalise on some of the cashbacks or benefits, you can’t do that if you stick to only one card and one service.
Conclusion
Linking your RuPay credit card to UPI can be a smart financial move, offering the ease of real-time digital payments with the added advantages of credit such as rewards, fraud protection, and cleaner bank statements. It bridges the gap between convenience and flexibility, enabling smoother transactions without directly touching your bank balance. However, users must be cautious of overspending and remain aware of technical limitations and service coverage. Ultimately, while this integration offers great benefits, a balanced and mindful approach is key to making the most of it.
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