Outlook Money
UPI transactions were initially limited to only savings accounts or debit cards. However, a recent announcement by the Reserve Bank of India allowed individuals to link his/her credit cards to UPI.
1. Convenience- Credit card payments would initially only cater to merchants who accept card payments. Now, one can make payments at any merchant that supports UPI.
Rewards can be earned by individuals on make even the smallest transactions through UPI. Many credit cards even offer cash back on purchases.
1. Overspending- The ease of UPI payments might result in spontaneous buying. Given that credit cards enable users to spend more than their current finances, this can lead them to debt.
Credit card interest rates in India range from 18-48 per cent per annum. If one fails to pay dues every month, it can lead to paying risk of paying higher interest rates.