The integration of the Unified Payments Interface (UPI) with credit cards combines the convenience of digital payments with the flexibility of credit lines, creating a seamless and versatile payment experience.
Here are the advantages of linking your Rupay credit with UPI and at the end, there will be a list of some credit cards for UPI.
Convenience and simplicity: Linking UPI with credit cards simplifies the payment process by allowing users to make transactions using a single platform. Users can consolidate their financial activities, such as bill payments, online shopping, and peer-to-peer transfers, within the UPI interface. This eliminates the need to navigate through multiple apps or platforms, streamlining the overall user experience.
Instant transactions: UPI transactions are known for their real-time processing capabilities. By integrating UPI with credit cards, users can leverage this speed to make instant payments using their credit card funds. This is especially beneficial in situations that require immediate payments, such as emergency expenses or time-sensitive transactions.
Enhanced security: Security is a paramount concern in digital transactions. Linking UPI with credit cards enhances security measures through features like two-factor authentication, biometric verification, and secure PIN entry. Additionally, UPI-enabled credit card transactions are often protected by robust fraud detection mechanisms, minimising the risk of unauthorised usage.
Access to credit line: One of the major advantages of credit cards is the access to a predetermined credit limit. By integrating UPI with credit cards, users can tap into this credit line while making payments through the UPI interface. This provides an extra layer of financial flexibility, allowing users to manage their cash flow more effectively.
EMI and revolving credit: Many credit cards offer the option to convert large transactions into Equated Monthly Instalments (EMIs). By linking UPI with credit cards, users can seamlessly convert eligible transactions made through UPI into EMIs. This feature enables users to manage larger expenses more comfortably over a period of time. Additionally, the revolving credit feature of credit cards allows users to pay off their outstanding balance in parts, providing further financial flexibility.
Reward points and cashback: Credit cards often come with reward points and cashback offers for various transactions. Linking UPI with credit cards ensures that users can avail themselves of these benefits even while using UPI for payments. This incentivizes users to choose credit cards for their UPI transactions, helping them save money and earn rewards simultaneously.
Financial tracking and management: Integrating UPI with credit cards centralises financial transactions, making it easier for users to track and manage their expenses. Users can monitor their spending patterns, review transaction histories, and set spending limits through a single interface. This promotes better financial planning and budgeting.
Cross-platform compatibility: UPI has gained widespread acceptance across various platforms and services, from online retailers to utility bill payments. By linking credit cards with UPI, users can leverage this universal acceptance to make payments across a diverse range of use cases. This eliminates the need to provide credit card details separately for each transaction.
Seamless online shopping: Online shopping has become an integral part of modern consumer behaviour. Linking UPI with credit cards streamlines the online shopping experience by allowing users to make payments swiftly and securely. This convenience encourages users to explore a wider range of online merchants and products.
Financial inclusion: The integration of UPI with credit cards contributes to the goal of financial inclusion. It allows users from various socioeconomic backgrounds to access credit and digital payment facilities without the need for a traditional bank account. This empowerment can lead to greater financial stability and improved economic prospects for a larger segment of the population.
List of some of the best credit cards which can be used for making UPI:
(a) Indian Oil Axis Bank Credit Card
(b) Tata Neu Plus and Infinity HDFC Bank Credit Card
(c) Bank of Baroda Easy Credit Card
(d) IDFC HPCL First Power Plus Credit Card
(e) PNB RuPay Select Credit Card
(f) Union Select RuPay Credit Card
(g) SBI Shaurya Credit Card
(h) HDFC Bank Regalia Rupay Select Credit Card
In conclusion, the integration of UPI with credit cards brings together the strengths of both technologies, resulting in a host of benefits for users. From convenience and security to access to credit lines and rewards, this innovation transforms the way users make payments and manage their finances. As the digital landscape continues to evolve, linking UPI with credit cards represents a significant stride towards a more seamless and inclusive financial ecosystem.
Rohit Gyanchandani is Managing Director at Nandi Nivesh Private Limited
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Updated: 18 Oct 2023, 09:32 AM IST