In 2022, the Reserve Bank of India said that users will soon be able to add their RuPay credit cards to the Unified Payments Interface (UPI), which will let them use their credit cards to pay with UPI.
When UPI first came out, users could only pay with their bank accounts. With the new feature, you can pay with your credit card by reading the merchant’s QR code, so you don’t have to carry your card with you everywhere.
Step by step activation to make UPI payments through credit cards:
Install a UPI-enabled app:
Download and install a UPI-enabled mobile app from your bank or any other authorized UPI provider. Popular UPI apps in India include BHIM, Google Pay, PhonePe, and Paytm.
Link your credit card:
Follow the app’s instructions to link your credit card to the UPI app. This process may involve entering your credit card details, such as card number, expiration date, and CVV, to establish the connection.
Verify your credit card:
Some UPI apps may require additional verification steps to ensure the security of your credit card. This could include one-time password (OTP) verification, biometric authentication, or other security measures.
Create a UPI ID & Set up UPI PIN:
Once your credit card is linked and verified, you may need to set up a UPI ID in the profile section and a UPI PIN within the app. The UPI PIN is a four- or six-digit code used to authenticate UPI transactions, and the UPI ID is a unique ID with a combination of numbers and letters.
Activate UPI payments:
After setting up your UPI ID and PIN, you should be able to start using UPI for payments through your credit card. The app will typically provide options to make payments, request money, or perform other UPI transactions.
Benefits of UPI Transactions
1. Convenience
For consumers, one of the biggest benefits of using UPI for payments is convenience.
Transactions can be completed within seconds with just a few clicks. There is no need to carry cash or wait in line at the ATM or bank branch.
Additionally, UPI benefits consumers by eliminating the need to enter personal banking details on an insecure website. All transactions are conducted through a secure payment gateway.
2. Low transaction fees
In addition, UPI benefits consumers by providing a low-cost alternative to other forms of payment.
UPI transactions have low transaction fees, making them an attractive option for smaller payments.
3. Security
Another benefit of using UPI is its enhanced security. All transactions are processed over a secure network that uses two-factor authentication and Advanced Encryption Standard (AES) encryption. This makes it more difficult for hackers to gain access to financial information.
Additionally, UPI benefits from using biometric authentication, which provides further protection against identity theft and fraud.
Banks which allow Rupay credit cards on UPI:
At present only 6 banks have allowed Rupay Credit cards on UPI
- Punjab National Bank
- Union Bank of India
- Indian Bank
- HDFC Bank
- Canara Bank
- Axis Bank
Conclusion
UPI-credit card transactions offer a great balance between convenience and security when it comes to online payments. By combining the best of both methods, customers can enjoy a safe and secure payment experience with added financial protection.