Have you tried using your Credit Card to make payments online? If yes, then you must have also faced some problems. Right? Wrong! There’s only one problem with making Credit Card payments through the internet, and that is at times, you will require entering your card number and its expiration date, which is certainly a cumbersome process. Did you know that UPI (Unified Payments Interface) Payment through Credit Cards is now possible? This significant development has already given big boosts to digital payment.
The association of UPI and credit cards has become a necessity these days. From making online purchases to booking tickets, this facility is used extensively. At present, credit card companies are all set to provide a secure and convenient payment option using the Unified payments interface (UPI). This blog will give the reader an overview of what UPI payment through credit cards is and how you can take advantage of making UPI payments through Credit Cards.
What is UPI?
UPI or Unified Payment Interface, will play a vital role in the near future of e-commerce and payment processing in India. For those who are completely unaware, UPI is a payment system launched by the National Payments Corporation of India (NPCI) to facilitate instant fund transfers between two bank accounts. It is an electronic payment system that enables money transfers through mobile phones without the involvement of any third party (such as a bank or other financial institution).
What are the Advantages of linking UPI Payments with Credit Cards?
Ease of Payments: No matter what you think, UPI payment through Credit Cards is convenient for a number of people. From customers who spend more time on their smartphones than using their debit cards, to those who have to hurry up when making transactions to new entrepreneurs setting up shop who do not have enough capital to invest in POS machines – the list is endless.
Flexibility: While there are many facilities that come along with making UPI payments through credit cards, there is one in particular, which is a significant rationale behind the sudden overwhelming trend of credit card usage among the masses. A credit card allows you to pay for a product later.
For example, if you’re low on cash and want a specific product, you can simply opt for the Credit Card payment mode. This way, you could avoid having to decline the offer. The reason being you would get more time to arrange funds in spite of your lack of it at present. That’s the flexibility associated with Credit Card usage one should benefit from.
Promoting Digital Payments: The potential of UPI can be unlocked by linking the payments instrument with existing channels of card network participants. The new payments destination will witness a host of benefits – would it be a one-stop destination for online shopping and bill payments, a digital platform for remittances to reach family and friends, or for a large volume of low-value small ticket payments which will lead to cost efficiencies to businesses and banks alike. And in return together we get a larger footprint of digital payment that will drive revenues and growth for our clients. However, one thing is clear – UPI has undoubtedly opened up opportunities for all stakeholders involved with this pioneering initiative.
Rise in Acceptability: The linkage of credit cards with UPI has led to ease in card acceptability. Cash at the moment still rules and credit cards will prove to be beneficial, especially when they are used in rural areas. The linkage would allow the merchant to use a QR code to accept payment by scanning through a mobile app. The customer will be charged on the credit card but will get a cashback if he has enabled the feature in his app.
Extra Benefits: There are several types of rewards that you can get with your Credit Card. The most common of these is cashbacks on all the purchases you make using your card. For instance, if you spend Rs. 10,000 on your Credit Card in a month, and get 5% cash back on the transaction, you will receive Rs. 500 back in your account.
In conclusion
When it comes down to it, the advantages of linking your credit card with UPI apps are numerous. Tapping your way to shopping and dining rewards is definitely a great incentive for using one of these apps, but convenience and security are what may ultimately push consumers away from the conventional swipe-and-pay system of the past. It will be interesting to see how many consumers will adopt UPI in lieu of tapping their credit cards during checkout in the future.
FAQs
UPI, India’s instant real-time payment system, facilitates instant transfers of funds between two bank accounts or UPI IDs.
Yes, you can easily link multiple credit or debit cards with your UPI account.
It’s not possible to increase or change the UPI limit. The UPI limit has been standardized by the Government, so individual users do not have any say in this regard.