UPI + Credit Cards - A game-changer?

The Reserve Bank of India (RBI) has announced linking RuPay credit cards to UPI, giving the world of instant payments a completely new avatar.

What does this mean for 26 crore Indian users and 5 crore merchants on the UPI platform?

Let’s dive straight in!

Until now, UPI payments were made by linking the bank account or PPI wallet of full KYC users. By announcing an intention to link credit cards with UPI, the RBI has now provided an option for users to make a payment from their saved cards.

All they need to do is:

  • Scan a QR code

  • Choose the added credit/debit card

  • Enter the OTP sent to the registered mobile number

  • Complete payment

So, will it be easier? Definitely.

More flexible? Oh yeah!

Let’s take a closer look at the details of the announcement.

Key Highlights

  • The e-mandate for recurring payments will raise on cards sharply, with the limit enhanced from ₹5,000 to ₹15,000 per transaction.

  • The aim is to provide more convenience to the customers and enhance the scope of digital payments.

  • Initially, only RuPay credit card users will be able to link their cards to UPI platforms. Individuals with other credit cards, such as Visa or MasterCard, will have to wait a little longer to use this new facility.

  • The Central Bank has not announced any charges yet for using credit cards for UPI payments. Banks or lenders could charge a nominal fee for linking credit cards to UPI platforms.

We expect the payment landscape to change, driving UPI adoption across the community. Of course, we will be tracking this story as it develops and will keep you posted on everything you need to know!

news2news2news2

UPI is among the most popular digital payment methods in 2022. Here’s its growth trajectory.

news2news2
m2pfintech

3 reasons why you need a  secured credit card

m2pfintech

Crack the  KYC Jigsaw.  Ease Onboarding Compliance

m2pfintech

NFC Payments: Simplifying Payment Space

m2pfintech

Credit Card Processing: A Definitive Guide

news2
m2pfintech

Axis Bank and Indian Oil launched their co-branded Rupay contactless credit card, in partnership with NPCI

m2pfintech

JP Morgan plans to incorporate tokenization of traditional assets into DeFi

m2pfintech

RBI mandates implementation of tokenization for card-based transactions to payment aggregators, payment gateways, and merchants within 30 June’22

news2
m2pfintech

Catch our co-founder, Madhusudanan R, speak about helping startups and banks  leverage the power of fintechat the Centre for Finance, Technology and Entrepreneurship (CFTE) event

That's it for now. See you again soon with all the need-to-know fintech updates!

Stay tuned. Stay curious.