National Payments Corporation of India (NPCI) has collaborated with payment aggregators to enable credit card transactions on its platform. This move will provide users with additional options to make UPI payments more seamlessly, particularly for those who prefer using credit cards for online transactions. It is currently unclear when this latest update will be available on UPI-based apps.
The decision to enable credit card-based UPI transactions comes shortly after the Reserve Bank of India extended the RuPay credit card facility to UPI. Several payment aggregators, including BharatPe, Cashfree Payments, Google Pay, Razorpay, Paytm, PayU, and Pine Labs, have reportedly agreed to support credit card-based UPI transactions. This move will also enable users to access short-term credit and rewards offered by credit cards.
Until now, UPI transactions could only be made through bank accounts, overdraft accounts, or prepaid accounts. However, with the recent integration of RuPay credit cards with UPI, users can now make payments without having to carry a physical credit card while traveling.
UPI is a payment system in India that enables instant money transfers between bank accounts without requiring bank account details. It has gained immense popularity, with over 8 billion transactions taking place on the platform every month.
This latest development is expected to provide a significant boost to digital payments in India. By offering users more flexibility in making payments, it is likely to encourage wider adoption of digital payments across the country.
