Until recently, I used to carry both my debit and credit cards wherever I went. UPI was my go-to for small payments — like the ₹60 chai break at the tapri or ₹120 for a quick Uber. But I always felt like I wasn’t making the most of my credit card — the one that gives me rewards, cashback, and some extra breathing space when cash is tight. That changed the day I realized I could use my RuPay credit card with UPI. Suddenly, I could pay my local vendor, auto driver, or even the electrician — not from my savings, but via my credit card — and still get those same benefits I’d otherwise only get while shopping online or at bigger stores. This small change is turning out to be quite big in the way we handle money.
What’s the Buzz About?
The idea is simple: you can now link RuPay credit cards to UPI apps like Google Pay, PhonePe, Paytm, and BHIM. That means instead of only using your bank account balance to pay via UPI, you can now choose your credit card — just like choosing between different bank accounts. No need to take out your wallet. No need to hand over your card. Just scan, tap, and you’re done. It works everywhere UPI works — which, honestly, is almost everywhere in India now.
Why It’s a Game-Changer
1. Contactless, PIN-less, and Quick
For payments under ₹2,000, most apps don’t even ask for a PIN. You just unlock your phone and scan. It’s faster than pulling out a card or entering your CVV on some slow terminal. Great for quick payments at small shops, cab rides, or even those late-night snack joints.
2. Daily Spending, But with Benefits
When I used to pay via UPI from my bank account, it was just money going out — no returns, no rewards. Now, every UPI payment through my credit card gives me:
- Cashback (on certain categories or apps)
- Reward points
- Special discounts on food, travel, etc.
So that ₹200 coffee? Now it contributes to free flight miles or gift cards. Doesn’t sound like much in one go, but over weeks and months, it adds up.
3. Easy Access to Offers
Credit cards often tie up with brands — Swiggy, Zomato, BigBasket, Myntra. When you use the card via UPI, those same offers still apply. I got ₹150 off on a Zomato order just last week because I used my RuPay card through UPI. If I’d used my savings account, I’d have missed that entirely.
4. Autopay – Set It and Forget It
This one’s for people like me who often forget their Netflix renewals or broadband bills. With your credit card linked to UPI, you can set up autopay for regular bills. Once it’s set, the amount gets deducted automatically on the due date. And since it’s via your credit card, you still have a few days’ breathing room before you actually pay — unlike your savings account where the money goes instantly. This has genuinely made my monthly payments stress-free. I don’t get late fees, and I’ve never missed a subscription renewal since I started.
Also read: Major Credit Card Changes Coming in 2025 – RBI’s New Rules Explained
The Credit Utilization Advantage
Here’s something not everyone knows, but it matters if you care about your credit score. Let’s say your credit card limit is ₹1,00,000, and you usually spend ₹60,000 a month. That’s 60% utilization — a bit high. But as you keep using your credit card responsibly — small spends, paid on time — banks may increase your limit to ₹1.5 or 2 lakhs. Now, even if your spends stay the same, your utilization ratio drops, which improves your credit score. In simple words: the more you use it wisely, the more the bank trusts you. That helps when you need a home loan or personal loan later.
Things to Watch Out For
- Only RuPay cards work (for now). If you have Visa or Mastercard, you’ll have to wait or get a new RuPay card.
- Not all merchants are happy. Some small vendors may frown when you say you’re paying via credit. Some even ask for extra (even though it’s technically not allowed).
- Overspending risk. Since it’s credit, it’s easy to lose track. If you don’t set reminders or check your statement often, it can snowball.
- Interest charges. If you miss the due date — even by a day — you pay interest. And it’s not small. Credit card interest is no joke.
So, Should You Start Using It?
If you already have a RuPay credit card, linking it to your UPI app is a no-brainer. Start small — pay for your daily coffee, local travel, or groceries. Track how many reward points you’re earning. Use it for regular bills and subscriptions. Just don’t forget to pay your card on time. If you don’t have a RuPay card yet, you might want to consider one — especially if most of your daily expenses go through UPI anyway.
Final Thoughts
The UPI-credit card link is a quiet but powerful upgrade in our day-to-day financial life. It blends the ease of UPI with the benefits of credit cards. You don’t need to change how you pay — just be smart about what you pay with. For me, it’s been a great shift. I still use UPI like before, but now every chai, every recharge, every grocery run — earns me something back.
Written by Roshni Mohinani
