Users making payments through Unified Payments Interface (UPI) can now earn reward points and cashback when they link their RuPay credit cards to the platform. This feature enables consumers to optimise their everyday spending while benefiting from credit card privileges.

Small Daily Expenses Can Generate Credit Card Rewards

The National Payments Corporation of India (NPCI) recently allowed UPI payments to be made using RuPay credit cards. As a result, routine transactions such as grocery shopping, utility bill payments, or fuel purchases can now earn users credit card reward points. This shift turns regular expenditures into an opportunity for value addition, similar to how traditional credit card purchases generate loyalty benefits.

Credit Spending with UPI Offers Greater Payment Convenience

Before this integration, UPI transactions were largely limited to direct bank account debits. With the ability to make payments using RuPay credit cards through UPI, users can now access short-term credit for everyday expenses while simultaneously earning rewards. This extends the convenience of UPI to a broader spectrum of financial tools and spending patterns.

RuPay Credit Cards Accepted by UPI-Compliant Merchants

Payments made using RuPay credit cards via UPI are supported at a vast network of merchant outlets that accept UPI. This includes both offline retail stores and online platforms, allowing users to make purchases without the need for physical card swipes. Payments can be completed through popular UPI-enabled apps, provided the application supports credit card linking.

Increased Adoption of RuPay Credit Cards Encouraged

The initiative is seen as a step to promote wider use of RuPay credit cards in the Indian market, which is traditionally dominated by Visa and Mastercard. By enabling RuPay cards for UPI usage, card issuers expect higher transaction volumes and improved customer engagement through the issuance of cashback and reward point benefits.

Managing Expenses While Earning Benefits

The combined utility of UPI’s fast digital payment system and the reward structure of credit cards allows users to manage their finances more effectively. This approach lets individuals maintain monthly spending discipline while also receiving value through points redemption or cashback. However, timely repayment of credit card dues remains essential to avoid interest charges.

Availability Across Major Banks

Several major Indian banks have enabled the linking of RuPay credit cards with UPI Services. Users are advised to check with their respective banks and UPI applications to ensure compatibility. Once linked, the RuPay credit card functions similarly to a linked bank account, only with the added feature of credit-based transactions and reward accumulation.

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