Kolkata: Unified Payments Interface, or UPI transactions, is recording galloping transactions every month. In January 2025, UPI transactions rose to 16.99 billion, up from 16.73 billion in December 2024. In November 2024, the volume was recorded at 15.48 billion. There is a jump in the credit card usage in the country in recent years — the number of cards in circulation rising from about 5.53 crore in December 2019, to about 10.8 crore in December 2024.
A credit card enables one to use it online or at a merchant outlet — a physical store. The point is, one can now enjoy the best of both modes by linking the credit card to your UPI account. Linking the card with your UPI account, will immediately multiply the possibilities of usage of the card manifold since UPI channels are found almost everywhere nowadays while PoS machines, which are necessary for using a credit card for payment are available at far fewer locations. QR codes or mobile numbers, where one can make UPI payments are almost everywhere nowadays and their numbers are rising all the time.
Benefits of linking credit cards and UPI
While linking credit cards and UPI immediately raises the usage possibilities of credit cards, it is also a one-time effort. Once the card is linked to UPI account, it need not be done again. The user also has no need to employ OTPs or passwords. Another benefit which is linked to frequency of usage is rewards available with increased usage of credit cards. If you use it more, you will can be entitled to significant rewards.
The process of linking
The first step of linking a credit card with a UPI account consists in clicking ‘Add Payment Method’ section of the UPI account. The next step is selecting ‘Credit Card’ and then filing up the details of the pertinent credit card. The typical information required in this field are the number of the card, CVV, expiry date. Usually popular UPI Platform such as PhonePe, Google Pay, Paytm allow linking of credit cards. The process also depends on the issuing bank.
However, one must remember the pitfalls of using a credit card very frequently, since it can easily build up a pile of high-cost loans. One has to be very disciplined while using a credit card and be very careful about repayments.
The use of both UPI (United Payments Interface) and credit cards can empower a person to use credit cards in far more places than a credit card can ever achieve on its own. However, one has to use credit cards judiciously so that a burden of loan is not created. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
