What Is RuPay Credit Card? How to Link Your RuPay Credit Card with UPI?

What Is UPI?

The Unified Payment Gateway, popularly known as UPI, has gained significant popularity as a swift payment option, as it gives the convenience of not needing physical currency or cards and its user-friendly interface that simplifies instant transactions. Similar to electronic wallets, it allows the connection of various savings accounts via debit cards. However, the funds are directly drawn from your bank account. UPI payments are regarded as a secure means of conducting cashless transactions, utilising your Virtual Payment Address (VPA) for money transfers, and bolstering security through dual-factor authentication and merchant validation. Some of the popular UPI apps in India include GooglePay, PhonePe, and BHIM.

[Read: 10 Tips to Use Your Credit Card Wisely]

[Read: Should You Use a Credit Card for Everyday Purchases? Know its Advantages And Disadvantages]

[Read: 9 Simple Tips to Protect Yourself from UPI Frauds]

[Read: Oops! Transferred Funds to the Wrong UPI Address? Here's What to Do]

What Is RuPay?

RuPay stands as India's pioneering global card payment network, extensively recognised at ATMs, point-of-sale (POS) terminals, and online marketplaces nationwide. Distinguished by its robust security measures, it effectively thwarts anti-phishing threats. The name, a fusion of 'Rupee' and 'Payment', underscores its indigenous essence in facilitating card transactions, proudly countering international payment networks. RuPay embodies the Reserve Bank of India's aim for reduced dependence on physical currency, necessitating the technological advancement and active involvement of Indian banks and financial entities to promote electronic payment solutions.

RuPay is a creation of the National Payments Corporation of India (NPCI), the overarching entity driving retail transactions within the nation. The mandate outlined in the Payment and Settlement Systems Act of 2007 empowered the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA) to establish a secure electronic payment and settlement framework in India.

The Government is implementing necessary strategies to enhance the usage of RuPay cards. RuPay Debit Cards have gained a substantial market presence, being distributed with savings accounts established under the Jan Dhan Yojana. Furthermore, Public Sector Undertaking (PSU) banks play an active role in promoting RuPay cards. However, the adoption of RuPay Credit Cards has been less prominent. Thus, the RBI aims to amplify the reach of RuPay Credit Cards and revolutionise the credit card landscape in India through UPI.

What Are the Benefits of Linking Your RuPay Credit Card to UPI?

• NFC-enabled gateways provide a streamlined single-tap payment feature

• By scanning the merchant QR code, your preferred UPI app facilitates credit card payments

• UPI apps ensure secure transactions for various payments like mobile recharges, bills, and more

• It is applicable for online merchants embracing UPI payments

• UPI transactions retain credit card rewards and promotions

• Unique UPI incentives, rewards, and cashback can complement credit card benefits

• The need to carry a physical credit card is eliminated

• UPI payments offer flexibility to choose between credit and registered debit cards

What Are the Drawbacks of UPI Payments with RuPay Credit Card?

• Using credit cards via UPI is limited to merchants accepting UPI QR code payments

• This service is not suitable for transferring funds to e-wallets or savings accounts

• Unlike debit cards, it lacks the capability to transfer money to others' bank accounts

Why Do Individuals Prefer to Link Their Credit Cards to UPI?

As you must be aware, a credit card operates on a deferred payment model, allowing you to make purchases today and settle the payment later without incurring additional fees. Moreover, credit cards often come with attractive offers and discounts for transactions with specific merchants. Consequently, many individuals opt to use their credit cards for both luxuries and everyday expenses. The integration of RuPay Credit Cards with UPI introduces a seamless and digitally streamlined credit card experience for customers. This innovation not only enhances the convenience of credit card usage but also expands the opportunities for its utilisation.

By linking RuPay's Credit Card to UPI, you can make credit card purchases with a single QR scan without carrying your plastic card. Furthermore, merchants stand to gain from heightened consumer spending by participating in the credit card ecosystem, facilitated through the acceptance of credit cards via QR codes.

Should You Link Your RuPay Credit Card to UPI for Instant Transactions?

Linking RuPay Credit Cards to UPI marks a significant transformative step in the realm of digital transactions. Nonetheless, it is imperative to exercise caution when using this option. Given that the money does not immediately go from your pocket, there is a tendency to spend more than your budget. The convenience and seamlessness associated with using credit cards for UPI payments can potentially increase your shopping tendencies. Such a scenario might cause the accumulation of debts and temptations for extravagant spending. Furthermore, the lack of financial discipline could potentially put you in a debt trap.

It is worth noting that your spending habit might differ if you were required to make purchases with physical cash or directly from your bank account. The allure of credit cards may increase unnecessary expenditures aimed at impressing others instead of spending as per your financial capabilities. If You want to avoid these pitfalls, you should prioritise linking your bank account for UPI payments and reserve the Credit Card UPI usage strictly for emergencies.

How to Link Your RuPay Credit Card to UPI?

Here's how you can link your RuPay Credit Card to UPI:

1. Open your preferred UPI app, such as Google Pay and PhonePe

2. Tap on your profile picture on the home screen

3. Under the "Set up payment method" or "Payment Section", tap on the "RuPay Credit Card" option

4. Select your RuPay Credit Card issuing bank, and the app will automatically fetch your credit card details

5. You will be asked for an OTP (One Time Password) for additional authentication

6. Select the card you wish to link and confirm

7. Provide the chosen RuPay Credit Card details, such as CVV and valid upto date

8. Set the UPI PIN

9. Your RuPay Credit Card is now added to your payment methods and ready to make UPI Credit Card purchases

To conclude:

The integration of credit cards with UPI marks a revolutionary leap forward. While this innovation offers unparalleled convenience, a cautionary approach is vital. The ease of spending can lead to unwise financial habits, potentially spiralling into debt. By adopting a mindful stance, individuals can harness this advancement without succumbing to impulsive spending. Responsible usage, guided by financial discipline, will ensure that this powerful tool enhances lives without compromising financial well-being. As we embrace the possibilities of seamless transactions, let us remember that true empowerment lies in making informed choices that shape a secure and prosperous financial future.

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KETKI JADHAV is a Content Writer at PersonalFN since August 2021. She is an MBA (Finance) and has over seven years of experience in Retail Banking. Ketki specialises in covering articles around banking, insurance, personal finance, and mutual funds and has been doing it for over three years now.

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This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.