21 June, 2025 | 11:01 IST
It has been almost a decade since the country witnessed a digital payments revolution, which started with the launch of UPI (Unified Payments Interface). Now, in a bid to make the process even more seamless, UPI platforms have introduced a new feature: integrated credit cards. Under this system, payments are made through a credit card linked to your UPI ID, instead of being directly deducted from your bank account.
Let us understand what a UPI credit card is, its limits, benefits and charges.
Table of Contents
A UPI credit card is just like a regular credit card, but it can be used to make payments directly through any UPI apps like PhonePe, GPay or Paytm. To make payments through a UPI credit card, you don't require a physical card to swipe; you just have to link the card to your UPI ID and pay using a QR code.
For example, you have to pay Rs 500 to a grocery store. You can either pay using a bank account from which the money will be deducted instantly. Otherwise, you can scan that QR code and pay later, just like a regular credit card.
If you are looking for a UPI credit card, you can explore many such credit cards with attractive features via Moneycontrol app and website. Moneycontrol has partnered with many leading card issuers to provide multiple credit cards. You can pick a UPI credit card as per your need from a range of cards and apply for it in a 100% paperless process.
1. Convenient: The best part of making a payment through UPI credit card is that you don't have to carry your physical credit card or even wallet. Just scan the QR code using your smartphone and pay in seconds.
2. Cost-friendly: In the past, a lot of businesses refused to accept credit cards because of the expense of card swipe machines or MDR (Merchant Discount Rate) fees. Because of UPI, local grocery stores and tea cafes now take credit card payments through QR codes.
3. Rewards and cashbacks: Some lenders also offer cashback or reward points if you make a payment by using your credit card through UPI. You can convert your reward points to get gifts, vouchers, or discounts. The highlight of this is that you can use your card for every little purchase.
4. Improve credit score: Paying bills on time can help improve your credit score. This will help you in securing better loans and credit offers in the future.
5. Instant payment: Credit card payments made with UPI are instantaneous, in contrast to some that take time to appear. The merchant receives the money on the spot, without any delay.
The limit of a UPI credit card depends on various factors such as the bank's policy, the type of card and the credit profile. Generally, UPI credit cards are the same as your regular credit card limit. For example, if your RuPay credit card has a Rs 1 lakh limit, you can use that same limit on UPI.
For select Merchant Category Codes (MCCs), this limit can go up to Rs 2 lakh per day.
There are no charges when you make the payment through UPI credit card. You will not be charged a single penny if you are paying the amount by scanning a QR code within your credit limit. There are times when you are charged based on how you use the card.
You may be charged a late payment fee if you don't pay your credit bill on time. You can also be charged interest on the unpaid amount. Some banks may also charge a processing fee or interest if you convert big spends into EMIs. Some platforms may also charge a convenience fee for bill payments or recharges done with credit cards.
For merchants accepting payments above Rs 2,000 using a PPI (like a digital wallet linked to UPI), there may be an interchange fee of up to 1.1%.
Moneycontrol offers access to multiple credit cards in partnership with several card issuers. You can apply for a credit card through a fully digital application process. Moneycontrol allows the potential cardholders to choose a credit card from a wide range of features, like shopping and travel, among others.
With UPI credit cards, you may pay with your phone instead of carrying a physical card, which streamlines everyday chaos. Paying with a QR code is as simple as using a regular credit card. The best part about making UPI payments via credit card is that you can earn rewards, cashback, and even boost your credit score.
Most payments are free if you pay your bill on time. But if you delay, you might have to pay late fees or interest. Whether you're at a big store or a small tea stall, UPI credit cards are super handy, safe, and great for everyday spending.
Share it in your circle
