The much awaited linking of credit cards with UPI for making mobile transactions is going to be a reality soon. The Reserve Bank of India on Wednesday (8th June 2022) proposed to allow linking credit cards with UPI for payments. Initially, this facility will be available for Rupay Credit Card users only.
Experts say that linking of credit card with UPI will further increase the usage of UPI, providing users another option to chose how they want to pay.
“Linking of credit card to UPI was always expected and will turn out to be a great payment option. This will further increase the usage of UPI even for large ticket items as the users can have balanced option to choose how they can pay,” said Muralidharan Srinivasan, Head of Payments, APMEA Region, FIS, a financial products and services company.
“Thus, it will widen the digital payments footprint in India, bolster merchant partnerships of card networks starting with home-grown payments system- RuPay and eventually other international players like Visa and Mastercard and elevate customer payments experience,” he added.
The Rupay Credit Card and UPI linking will also pave way for other geographies to adapt UPI much faster and easier.
“RBI’s latest announcement for the extension of linking UPI to credit cards is a great move towards the cashless economy,” said Srinivasan.
According to RBI, Credit Card-UPI linking will more avenues and convenience to the customers in making payments through UPI platform.
Anjan Dasgupta, Partner, DSK Legal, said that linking UPI platform with credit card will immensely benefit customers. However, this linking facility should not be restricted to Rupay credit cards only.
“Given the market leading reach of UPI payments, linking the UPI platform with credit cards will immensely benefit the credit card customers. However, to keep a level playing field in the credit card market this should not be just restricted to credit cards using the RuPay payment processing network,” Dasgupta told FE Online.
“All credit cards using payment processing networks like Visa, Mastercard and Amex etc. should be allowed immediate access otherwise this initiative would seem discriminatory specially since RuPay is an Indian financial services and payment service system, conceived and launched by the NPCI. The others are all foreign networks. I don’t see a reason why this is only going to be first rolled out with RuPay credit cards. System development can be completed simultaneously for all credit cards,” he added.