The UPI-RuPay credit card linkage is transforming how Indians spend digitally — combining the flexibility of credit with the convenience of instant UPI payments.
As usage scales up, Paytm Payments Bank and SBI Cards are expected to be among the biggest winners, thanks to their strong UPI ecosystems and merchant networks.
What’s Driving This Growth
The National Payments Corporation of India (NPCI) allowed credit cards to be linked to UPI to increase digital spending while maintaining secure, cashless transactions.
Here’s why adoption is surging:
Ease of Use: Pay via QR with your RuPay credit card — no need for POS machines.
Wider Acceptance: Small merchants now accept credit via UPI.
Rewards & Cashback: Credit card points combine with UPI offers, driving more usage.
Zero MDR (Merchant Discount Rate) for select transactions keeps merchants happy.
Why Paytm & SBI Cards Stand to Gain
Paytm’s Advantage
Paytm’s wide QR acceptance network positions it as a natural leader in UPI-linked credit payments. With over 3 crore merchants onboarded, Paytm can channel massive RuPay credit card usage directly through its app.
SBI Cards’ Strong Credit Base
As India’s largest standalone credit card issuer, SBI Cards already commands a loyal base of RuPay users. Integration with UPI strengthens its position in both urban and semi-urban markets.
Joint Ecosystem Effect
Paytm’s UPI expertise and SBI Cards’ customer base could together accelerate transaction volumes, creating a powerful fintech synergy.
Data Snapshot (Industry Estimates – 2025)
| Metric | FY24 | FY25 (Est.) |
|---|---|---|
| UPI-linked Credit Cards (Active) | 1.2 million | 3.5 million |
| Average Transaction Value | ₹1,500 | ₹2,400 |
| Market Share: RuPay | 15% | 25% |
| Key Beneficiaries | Paytm, SBI Cards, Axis Bank | Paytm, SBI Cards |
Expert Insight
“RuPay credit on UPI is a game changer. It blends credit convenience with real-time digital infrastructure — especially beneficial for India’s retail and MSME economy,” said a fintech strategist.
What It Means for Consumers
More Choices: Users can choose to pay via UPI directly from credit.
Better Rewards: Banks will compete with new cashback models.
Increased Security: RuPay’s domestic processing ensures data sovereignty.
Simplified Payments: One QR code works for both debit and credit transactions.
Challenges Ahead
Low Awareness: Many users still don’t know credit cards can be used via UPI.
Merchant Adoption Gaps: Smaller towns need training and awareness.
Bank Tech Integration: Seamless UPI-credit linking is still evolving across all banks.
FAQ
Q1: What is a UPI-linked RuPay credit card?
It’s a credit card that lets users make UPI payments directly from their credit line instead of a bank account.
Q2: Can I use any credit card for UPI payments?
Currently, only RuPay credit cards can be linked with UPI.
Q3: Which apps support this feature?
Major UPI apps like Paytm, PhonePe, BHIM, and Google Pay support RuPay credit cards.
Q4: Will merchants pay higher charges for accepting credit via UPI?
No. For most transactions, there’s zero or minimal MDR, making it merchant-friendly.
Q5: How do I link my RuPay credit card with UPI?
Open your preferred UPI app, go to “Add Account or Card,” choose “RuPay Credit Card,” and verify using OTP.
Conclusion
As India’s digital payment ecosystem matures, the UPI-RuPay credit card integration could redefine everyday spending.
With Paytm and SBI Cards leading adoption, India is moving closer to a unified, cashless, credit-friendly economy — where convenience meets innovation.
The next wave of growth in fintech will likely come from credit on UPI, and this time, everyone — from consumers to merchants — stands to gain.
Published on : 28th October
Published by : SMITA
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