Axis Bank, India’s third largest private sector bank, enabled RuPay Credit Card functionality on UPI today. Bank customers can pay with their RuPay Credit Card when scanning UPI QR Codes or at the merchant’s UPI checkout page. Customers will be able to reap the benefits of credit card rewards while also benefiting from the ease of UPI’s immediate payment. The capability is being phased in by the bank.
The solution functions in the same way that clients linked their bank accounts in UPI. In their UPI Apps*, the user must pick “AXIS BANK CREDIT CARD” from the list of banks that accept credit cards. Based on the customer’s mobile number, the linked RuPay Credit Card will be retrieved and displayed to the customer. The customer must then generate a UPI PIN. This UPI PIN will be distinct from the customer’s existing Credit Card PIN. This capability is presently available in UPI Apps* that support the RuPay Credit Card feature and customers who have an Axis Bank RuPay Credit Card.
Commenting on the launch, Sanjeev Moghe, President & Head – Cards & Payments, Axis Bank, said “With approximately 250 million customers using UPI for their peer-to- peer and merchant payments, the linkage of RuPay Credit Cards with UPI will lead to a rise in acceptability through the vast network of five crores UPI merchants, providing customers with more points of acceptance of their credit cards. Till now, such customers could only use their bank accounts for all Scan & Pay and other forms of UPI merchant payments. In the future, UPI can act as a standalone payment gateway where various forms of payment instruments like Bank Accounts, Credit Cards, PPI wallets can be linked. It is also beneficial to merchants, especially those in semi-urban areas, where card point-of-sale terminals are not widely available as UPI is one of the cheapest asset light payment acceptance solution. Axis Bank has always been at the forefront of extending UPI’s multiple payments flows to its customers and we continue to scale our U
PI growth with these innovations and play an important role in fulfilling the dream of underwriting Bharat.”
Adding to the excitement surrounding the launch, Praveena Rai, COO, NPCI said “Unlocking the world of possibilities, RuPay Credit Card on UPI is redefining the way we pay with its cutting-edge technology and convenience of UPI. Leveraging the vast reach of UPI, RuPay Credit Card on UPI opens doors to new opportunities for consumers seeking credit solutions. This unique product brings together the convenient and seamless UPI experience and the benefits of credit cards in terms of credit lines and rewards. RuPay Credit Cards on UPI also embodies our vision to make credit accessible to all, driving economic growth and social progress. We are delighted to have Axis Bank live on RuPay Credit Cards on UPI.’’
Credit-based payment transactions are predicted to expand by 16 per cent year on year over the next four years, according to the RBI’s Payments Vision for 2025. With India quickly embracing digital payments for day-to-day transactions.
The credit card-UPI connection announcement will increase the use of credit cards for small value payments in UPI. This will also lead to more people choosing for credit cards, given the convenience of UPI is currently confined to bank accounts.