UPI Payments Using Credit Cards

Credit Card For UPI Payments

Understanding UPI payments

In recent years, the entire financial landscape has undergone monumental changes. With improved digitalisation and increased emphasis on having seamless online payments, many products have come to light, with UPI being one of them. 

Short for Unified Payments Interface, UPI has transformed the way digital transactions are done. In an attempt to establish better connectivity, users can also leverage credit cards for UPI payments. 

You must know how to use credit card for UPI payment in order to make the best use of it. Read on to explore the thorough workings of UPI payments and the array of benefits they offer. 

If you wish to know the best ways to leverage credit cards for UPI payments, it is crucial to understand UPI in detail. Once you are well-versed in its working, you can easily make the best use of its offered functionalities. 

UPI acts as a real-time payment system that helps you make online payments swiftly. Now, you can easily send money from your bank account within seconds in a secure manner with UPI in action. 

Designed under the purview of the NPCI, UPI has garnered favour as a beloved financial solution among users. In a relatively short time frame, it has gained widespread popularity across diverse age groups, primarily due to its user-friendly design.

The process of using your credit card for UPI payments

Interestingly, you can turn to your credit cards for executing UPI payments. Below are a few simple steps that you must follow to use a credit card for UPI:

Choose an app for UPI

You can get started by simply installing a mobile application for accessing UPI. Some popular options include Paytm and Google Pay. Download the payment app that best meets your requirements and works well on your device.

Linking the credit card

To proceed ahead, you must link your credit card with the application. Follow the instructions mentioned in the app and set up your connection by entering all the required details.

Verification of your credit card

You must also have a dedicated verification of your card to ensure the safety of your data. Enter the OTP received on your email or phone to complete the verification.

Set up a UPI PIN

With your credit card linked and verified, it’s essential to create a UPI Personal Identification Number (UPI PIN). This PIN is crucial for authorising transactions. Make sure to choose a strong PIN.

Initiate transactions

Once your account is all set, you can start using the credit card for making UPI payments. Whether it is transferring money to someone, paying rent or making an online purchase— you can easily make the transaction.

Must Read: Improve Credit Score With A Secured Credit Card

Benefits of using your credit card for UPI payments

Now that you know how to use your credit card for UPI payments, let’s explore the advantages of this payment method:

Unlock rewards

Many credit cards come with enticing rewards and cashback offers for transactions. When you use your credit card for UPI payments, you can start accumulating reward points or cashback, making your spending even more rewarding.

Flexible spending limit

Credit cards can be your saviour when your bank balance is running short of funds. It allows you to make purchases and makes up for a flexible spending limit.

Enhanced security

One of the most popular features of credit cards is their offered security. The card issuers have dedicated measures in play to encrypt all the crucial details and minimise the chances of fraud. This extra layer of protection ensures worry-free UPI payments.

Credit score boost

When handled responsibly, credit cards can be considered a great tool to uplift your credit score. This further leads to increased credibility and paves the way for an improved financial positioning. Make sure to pay your bills on time to remain in the good books.

Must Read: Credit Card Statement & Due Date Payment Cycle

Key considerations when using your credit card for UPI payments

While there are many benefits of utilising a credit card for your UPI payments, you must also consider important aspects that influence its working. Let’s take a closer look at some of the key considerations you must keep in mind while opting for this payment setup:

Interest matters

Card issuers often levy steep rates of interest if you fail to make payments in time. To dodge these pesky interest charges, ensure you settle your credit card bill completely and punctually.

Credit utilisation awareness

It is ideal to keep an eye on your credit limit at all times. Overspending can lead to a negative credit score and hinder your financial goals in the long run.

Security first

Prioritise the security of your UPI app and credit card details. Employ robust and unique passwords or PINs to fortify your defences. Never share your UPI PIN or credit card specifics with anyone. Regularly scrutinise your credit card statements to promptly spot and address any unauthorised transactions.

Wrapping up

Credit cards can be an effective financial tool when used wisely. Alongside its other benefits, you can also link it up for executing UPI payments with ease. Make sure to pick a reliable credit card provider like Kotak 811 that ensures smooth sailing throughout the journey.

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.