National Payments Corporation of India (NPCI) has partnered with top payment aggregators in India, including BharatPe, Cashfree Payments, Google Pay, Razorpay, Paytm, PayU, and Pine Labs, to facilitate credit card transactions on Unified Payments Interface (UPI). This move comes after the Reserve Bank of India’s recent decision to link RuPay credit cards to UPI, providing customers with the convenience of both instant payments through UPI and the benefits of credit cards.
With approximately 250 million Indians
Using UPI for their daily transactions and close to 50 million users having one or more credit cards, the linkage of credit cards with UPI is expected to enhance customer experience and merchant acceptance. Previously, UPI customers could only make transactions through their bank accounts, overdraft accounts, and prepaid accounts. By enabling merchants to accept credit card payments through UPI, customers will no longer have to carry their credit cards with them at all times.
Nalin Bansal, Chief of Corporate and Fintech Relationships and Key Initiatives at NPCI, stated that the partnership with payment aggregators will help boost merchant acceptance and customer awareness, with the goal of promoting the adoption of digital payments via credit cards on UPI. This move is also beneficial to merchants, particularly those in semi-urban areas where card point-of-sale terminals are not widely available.
UPI has become one of the most inclusive modes of payment in India
with over 250 million unique users and five crore merchants on the platform. In January alone, UPI processed 8038.59 million transactions amounting to 1,299,058.78 crore. With credit-based payment transactions expected to grow by 16% year-on-year for the next four years, according to the RBI Payments Vision for 2025, the credit card-UPI linkage announcement is expected to provide access to a hassle-free and smooth payments experience for individuals and merchants alike heading into the future.
At Payloud, we understand the importance of staying up-to-date with the latest developments in the digital payments space. This collaboration between NPCI and leading payment aggregators in India is a significant step towards providing customers with a seamless and convenient payments experience. As a solutions provider, we strive to offer innovative and efficient solutions that can help businesses save time and money while improving customer satisfaction.
In conclusion, the partnership between NPCI and payment aggregators is set to revolutionize the digital payments space in India. The credit card-UPI linkage will offer customers the benefits of both instant payments through UPI and credit cards, while also improving merchant acceptance and customer awareness. At Payloud, we are committed to providing our customers with the best solutions that can help streamline their businesses and improve their bottom line.