During the past years, we Indians have always been proud that a platform like UPI originated in our country for quick bill pay. You might have read about several other innovations and platforms that have gained immense popularity in no time. UPI will also be somewhere at the top when we factor in the total addressable market and penetration.
To your knowledge, in July 2016, around 90,000 transactions took place via UPI payment, and the numbers went close to 7 .8 billion on December 22. Isn’t this amazing growth?
Online mobile bill payment has been so successful in our country because of the ease it brings with usage and the security that comes with cashless transactions. When making a UPI payment, the money gets debited from the bank account you have linked to your UPI ID. In the past, only debit cards were allowed for UPI payments. Hence, several people in India also wanted to link their credit cards to their UPI to bring liquidity throughout the month. Moreover, UPI payments Also affected credit card companies’ business in a few ways. Hence, to make UPI more useful for its consumers, the RBI allowed linking credit cards with the UPI apps to make UPI payments.
Six reasons why you must link your credit card with UPI
Here are six reasons why you must consider linking your credit card to a UPI app
- You can make a payment from your credit card by scanning the merchant QR code through your preferred UPI app.
- You can easily recharge your mobile, pay electricity bills, and initiate telephone bill payments after linking your credit card with the UPI app with the most security.
- When you make payments from a credit card via UPI, it gives you liquidity, and you can also earn multiple reward points and coins from your credit card firm.
- You will not have to carry your Credit card everywhere to make a payment or a purchase, and you can easily make transactions through your UPI app.
- In case your credit card limit is exhausted. You can switch to your debit cards to make payments on the same UPI app to avoid the hassle.
- Many credit card firms do not take any charges on the UPI transaction made up to a certain amount.
What makes credit card issuers happy with this move?
Several individuals prefer UPI apps for payments from small to medium size transactions as small merchants need a setup for accepting credit cards. However, with this change, credit card issuers can now talk into payments made to small start-ups, bringing in good volumes each month.
Before linking your credit card to UPI, you must know-
A new credit card issuer must be careful that they are not exhausting their credit limit. There might be a tendency to overspend as you don’t require the money in your bank with this facility. If you fail to make timely payments, interest will be charged by these credit card firms in a higher amount. You can also fall into a debt trap if you are unable to make proper use of your credit card.
In the digital payment era, linking your credit cards with UPI apps has stood out as a game changer, with several advantages for both companies and consumers. Hence, it has come out as a good move for everyone.
