Outlook Money
UPI credit cards combine the convenience and use of the Unified Payments Interface (UPI) with the multiple functionalities of credit cards to make payments seamless, as well as completely cashless.
1. Interoperable Payments- Now, users no longer need to carry physical cards. Their credit card can be added to a UPI application like Paytm, PhonePe, or BHIM. Payments are effected by scanning a QR code and authenticating through a UPI PIN.
Unlike standard UPI transactions linked to bank accounts, UPI credit card payments allow users to make purchases even when their bank balance is insufficient, as payments are charged to the credit card.
Credit card-linked UPI payments consolidate all transactions into a single credit card bill, keeping your bank statement clutter-free.
One the ways by which the credit cards work is by Linking. Currently, UPI credit cards support RuPay cards, so users can link their RuPay credit card to a UPI app by selecting the card option during setup and verifying using OTP.
After linking, the user can initiate a payment at any UPI-enabled merchant through a QR code scan of that merchant's QR code. The amount will be deducted from the available credit limit.
Each credit card payment made through UPI during the billing cycle will be reflected on the monthly credit card statement, allowing for easy settlement.