Credit cards are getting new features every day. Now credit cards can be linked as a payment method in the Unified Payment Interface applications like Google Pay, Phonepe, Paytm, Amazon Pay, and more. This promotes increased business transactions and optimum utilisation of available credit. Let us see how using credit cards as a payment mode in UPI can help businesses.

Benefits To Businesses By Making Credit Card Payments With UPI

Easy To Use

Adding a credit card to the UPI app can save time for both the merchants and the customers as there is no need to enter the details manually except for CVV. The tap-and-pay feature of UPI is enhanced with the usage of credit cards. There is no need to carry a credit card all the time. This enables seamless shopping with credit card-linked UPI apps. Also, there are no charges for credit card payments via UPI.

Multiple Offers

Credit cards give you a bouquet of offers, rewards, and cashback. Every spending can earn you multiple benefits according to the reward programs of the credit card. Adding credit cards for UPI payments, the customers enjoy the double benefit of getting rewards from credit cards and the UPI app. Hence the customers are motivated to spend more using a credit card linked to UPI.


The UPI applications are strongly encrypted. The transaction is complete only when mobile OTP is entered. Hence the credit card payments through UPI are amply secured. The customers are relieved of the security of transactions and the merchants are also protected from credit card failure using POS terminals.

Easy Credit

When UPI transactions are linked to the debit card or bank account, the user can utilise only the amount available in the bank account. But with credit cards, the users are provided with an easy credit facility. By linking the credit cards with UPI, the customers need not postpone any purchase due to cash constraints. Credit cards for UPI promote accelerated business to the traders by way of instant funding options.

Instant Money

When credit cards are swiped through POS terminals, the customers go for EMI options in case of big-ticket purchases. Credit card payments through UPI enable instant payment facilities to the merchants according to the credit limit of the buyer. Hence businesses need not wait for a longer time to realise their sales. 

Reduces investment

The PoS terminals are either to be purchased or taken on rent to be used for card swipes in the business. With credit card payments via UPI, the merchants are relieved of the need to spend on PoS machines and they get instant payments on their sales.

Reduces Settlement Time

PoS transactions are generally settled at T+1 or T+2. The cash flow of the business is locked and the businesses suffer heavily during banking holidays. Receiving payments via credit card-linked UPI gives instant settlement of the money to the bank account of the merchants.

How To Make UPI Payments via Credit Cards?

When paying a merchant physically or during an online shopping

  • Open the UPI application.
  • Scan the QR code of the merchant or his mobile number.
  • Choose the preference for mode of payment via UPI.
  • Choose the preferred credit card.
  • Key in the UPI pin and mobile OTP.

The UPI payment is done through a credit card.

Credit Cards That Can Be Used For UPI Payments

All Master, VISA, and RuPay Cards of

  • Axis Bank
  • ICICI Bank
  • HDFC Bank
  • State Bank of India
  • Federal Bank
  • ICICI Bank
  • Punjab National Bank
  • Kotak Mahindra Bank
  • HSBC Bank
  • RBL Bank
  • Bank Of India
  • IDBI Bank
  • Canara Bank
  • Union Bank of India and much more.

Experts Opinion

As per RBI, more than 40% of Indians use UPI for payments, while only 6% of Indians have access to credit cards.

Nearly 60% of the non-cash transactions were done through UPI during the financial year 2022, whereas the PoS transactions were only 5%.

Muralidaran Srinivasan, Head of Payments, FIS opines that UPI will increase the reach of payments throughout the country. It promotes a cashless society and the consumers will greatly benefit by linking the credit card to UPI. 

Mandar Agashe of Sarvatra Technologies says linking credit cards to UPI promotes the concept of “Digital India” and accentuates the average ticket size of digital transactions.


Though making payments using credit cards through UPI is easy and convenient, it can create incessant spending habits and lead to a debt trap. Hence the cardholders must use their credit card judiciously while making payments through UPI. This payment form has the potential to benefit both the merchants and the consumers if used rightly. Link your credit card to UPI and reap the full benefits of payments.

FAQ of How credit card transactions on UPI will work for businesses

1:What are the credit cards supported in UPI?

The credit cards of popular financial institutions like SBI, Axis, ICICI Bank, and many more banks are supported by UPI. 

2:Is my credit card information safe in the UPI application?

Yes. Your credit card information is secured by the phone's lock security and the UPI access controls. 

3:Can I add more than one credit card to my UPI?

There is no limit on the number of credit cards that can be added to UPI. You will be required to select the card that you want to use while making a payment.

4:Can the credit card-linked UPI be used for online purchases?

Yes. You can make credit card payments via UPI for both online and physical purchases.

5:Are there additional charges for using a credit card in UPI?

No. There are no additional charges for using your credit card to pay via UPI. The standard charges for your credit card outstanding apply.