Making UPI payments with your credit card: What you need to know

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If you thought UPI was only for making payments directly from your bank account, think again. In a major step forward, the National Payments Corporation of India (NPCI) now allows users to link their RuPay credit cards to popular UPI apps like Google Pay, PhonePe, Paytm, and BHIM. This means you can now scan UPI QR codes and pay using your credit limit, just as conveniently as you would with your bank account.

It’s a significant shift that brings together the flexibility of card-based payments with the simplicity of UPI.

RuPay only—for now

Currently, this functionality is exclusive to RuPay-branded credit cards issued by banks such as SBI, HDFC Bank, Axis Bank, PNB, Union Bank, and others. Cards issued by international networks like Visa, Mastercard, and American Express are not yet eligible for UPI linking. However, expansion to these networks may happen in the future.

How to link your RuPay credit card to UPI

Linking your RuPay credit card to a UPI app is easy. Just open your preferred UPI app and go to the section where you typically add a bank account. Choose your card-issuing bank from the list and enter the required card details. You’ll receive an OTP on your registered mobile number for verification. Once authenticated, your RuPay credit card will appear as a payment option within the app, separate from your bank account.

Where and how you can use it

Once your RuPay credit card is linked, you can use it to scan and pay at any merchant UPI QR code that supports “credit on UPI.” This allows you to tap into your credit card limit for everyday purchases without having to swipe or tap the card physically. However, not all QR codes accept credit cards via UPI—merchant compatibility depends on whether their payment service provider supports the feature. So, keep an eye out for merchants displaying “Credit on UPI accepted” signage.

It’s important to note that this feature is limited to merchant transactions only. You cannot use your linked RuPay credit card for person-to-person (P2P) transfers on UPI.

Why this could be useful

There are several benefits to using a RuPay credit card on UPI. You continue to earn reward points on your transactions, just as you would when using your card directly. You also retain the usual interest-free period, provided you pay your credit card bill on time. The transaction limit is ₹1 lakh per day, though it goes up to ₹2 lakh for specific categories like healthcare and education, based on RBI guidelines.

What about debit cards?

While RuPay debit cards play a role in authenticating bank accounts during UPI setup, they are not used as standalone payment methods on UPI. Unlike RuPay credit cards, you cannot link a RuPay debit card separately for UPI payments. All UPI transactions that involve debit cards are still bank account-based, not card-based.

In other words, your debit card is simply a gateway to your bank account—not an independent UPI payment source the way RuPay credit cards are.

Things to watch out for

Using credit on UPI offers flexibility, but it comes with the usual responsibilities of credit card usage. If you don’t pay your bill in full by the due date, you’ll incur interest charges and late fees. Also, be aware that not every merchant supports credit card-based UPI payments yet, so acceptance may vary.

Bringing RuPay credit cards into the UPI ecosystem is a big leap for digital payments in India. It makes credit spending more seamless and integrated, especially for those who already rely on UPI for everyday payments. If you have a RuPay credit card and shop at merchants that accept credit on UPI, this is definitely a feature worth trying.

Just be sure to spend responsibly and pay your credit card bills on time—UPI may be instant, but the debt is real.