Recently, the Reserve Bank of India announced that unified payments interface (UPI) users can now link their credit cards to their UPI accounts for UPI transactions. Earlier, users could only use their debit cards to link their current or savings accounts.
In a press release, RBI governor Shaktikanta Das said that around 594 crore UPI transactions were made in May 2022 alone. Also, it was the highest recorded volume of transactions in India.
This is the reason why RBI has allowed people to link their credit cards to their UPI accounts as it will also help users to increase their payment options.
How do UPI work?
When a person adds his credit card or debit card to UPI apps, he doesn’t need to swipe the card at the POS machine rather he can make a direct payment.
All you need to do is, scan a QR code and choose the credit or debit as your payment method. Once the payment has been initiated, you will receive a one-time password (OTP) on your registered phone number. Add the number and your payment will be completed.
How to pay via credit/debit card using UPI in GPay, PhonePe, etc
The first thing you need to do is, add the cards to the UPI app. As per GPay’s website, the following are the banks whose credit or debit cards can be added provided that these are operated on MasterCard and Visa payment gateways:
- Axis Bank
- Federal Bank
- HDFC Bank
- HSBC Bank
- IndusInd Bank
- ICICI Bank
- Kotak Bank
- One card (Visa credit card)
- RBL Bank
- SBI, SBI cards
How to add a credit or debit card on GPay?
Adding credit and debit cards on GPay is easy if you follow the steps mentioned below:
- First of all, open the GPay app on your phone
- Then click on your profile picture
- There you will see the bank account already added to your app
- Just click on it and then go to “add credit or debit card’ to add your card on GPay
- Once done, you will be required to enter your card details including card number, expiry date, CVV, billing address, and card holder’s name
- After filling the details click on save
- You will receive some terms and conditions, agree to them
NOTE: You will also need to verify your card before you start using it. You will receive an OTP on the registered mobile number. Verify OTP and you will be able to use the card for transactions.
Where you can pay using a credit or debit card via GPay?
As per GPay’s website, you can use your credit or debit card for the following transactions:
- Bharat QR code-based payments at online and offline merchants
- Tap & pay at NFC enabled payment terminals
- Bill payments and recharges on Google Pay Online
- Online payments on Myntra, Yatra, Magic Pin, Cool winks, EaseMyTrip, and Confirmtkt android apps
As per PhonePe’s website, credit and debit cards can be used for products and services offered on PhonePe merchants and sellers or the PhonePe app.
So, how do you like the new credit card linking facility for UPI? Will it make UPI payments more popular? Do tell us through the comment section below.