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A UPI credit card is a traditional credit card linked to the Unified Payments Interface (UPI) system, allowing users to make payments directly from the card through UPI apps. It combines the convenience of UPI payments with the benefits of a credit facility. Instead of debiting money from a savings account, the amount is deducted from your credit card limit.
This solution is ideal for users looking to manage cash flow while enjoying rewards and secure transactions. As UPI continues to dominate retail payments in India, UPI credit cards have emerged as a convenient tool for both online and offline purchases.
To answer the common question — what is UPI credit— it refers to using a credit facility, rather than your bank balance, to complete a transaction via UPI. The amount is later repaid to the card issuer as per the billing cycle.
Understand how UPI credit cards function, from linking them to making safe, instant payments via popular UPI apps.
A UPI credit card works by connecting your credit card to a UPI-enabled app, allowing you to make payments directly from your credit limit rather than your bank account. It combines UPI's instant payment capability with the flexibility of a credit facility.
Apply for a credit card from an issuer that supports UPI linkage
Use a recognised app like BHIM, GPay, PhonePe, or Paytm
Within the app, go to 'Add UPI Payment Method', select 'Credit Card', and choose the issuing network
Authenticate using your registered mobile number and set a secure UPI PIN for transactions
At checkout or while scanning a QR code, select the linked credit card and authorise the payment using your UPI PIN
This setup allows you to complete credit-based transactions instantly through UPI without needing to swipe a card.
A frequently asked query is — how does UPI credit card work? The process enables cardholders to pay using UPI while drawing from their credit limit instead of their bank balance.
Your credit limit is determined based on your income, credit history, and repayment behaviour. It can vary widely between users, depending on the risk profile assessed by the issuer.
A UPI credit card offers a seamless payment experience by merging UPI convenience with credit card flexibility. It brings several practical advantages for users.
Such as:
UPI payments are processed instantly. When linked to a credit card, you can make contactless transactions without carrying the physical card.
Since payments are made using a UPI ID or QR code, there's no need to share card numbers, reducing the risk of data theft.
UPI credit cards often carry the same benefits as standard credit cards, cashback, loyalty points, or partner discounts, even for QR-based payments.
UPI is widely accepted across small merchants, online platforms, and government services, expanding the usability of your credit card.
Every payment requires UPI PIN authentication, adding an extra layer of security compared to swiping or inserting cards.
These features make UPI credit cards a preferred choice for digital-first consumers looking for a secure, efficient way to pay without bank account deductions.
UPI credit cards allow users to make payments via popular UPI apps while enjoying the benefits of a credit facility. Here is a curated list of some of the best UPI credit cards available on Bajaj Markets:
Here’s a detailed comparison:
Credit Card |
UPI Compatibility |
Joining Fees |
Annual Fees |
|---|---|---|---|
|
₹0 |
₹0 |
|
|
₹0 |
₹0 |
|
|
₹0 |
₹499 |
|
|
₹0 |
₹0 |
|
|
₹199 |
₹199 |
|
|
₹499 |
₹499 (Second year onwards) Waived off if you spend over ₹1.5 Lakhs in the preceding year |
|
|
₹499 |
₹499 only (2nd Year Onwards) |
|
|
₹500 + GST |
Only ₹300 + GST |
Disclaimer: The fees and benefits for these credit cards are subject to change at the issuer’s discretion. Check the issuer’s official website before applying.
You can apply for credit cards that are linkable to UPI apps on Bajaj Markets. Follow these simple steps to complete your application online:
Click on the ‘Check Eligibility’ option and enter basic details such as your mobile number, date of birth, and employment type
Enter the OTP received on your registered mobile number to proceed
Verify and confirm your pre-filled information like PAN, email ID, residential PIN code, and income details
Review the list of eligible UPI credit cards based on your profile and select the one that fits your needs
Click ‘Submit’ to finalise your application
Once approved, your card may be issued virtually or physically, depending on the provider. You can then link it to a UPI app to start making credit-based UPI payments.
UPI credit cards differ from traditional credit cards mainly in the way transactions are initiated and processed.
Here’s how they compare:
Feature |
UPI Credit Card |
Regular Credit Card |
|---|---|---|
Payment Method |
Uses UPI apps to make payments via UPI ID or QR |
Uses physical card, card number, or tap/swipe |
Linking |
Linked to UPI app (e.g. GPay, PhonePe) |
No linking; used directly via POS or online |
Usage |
Pay using UPI PIN after QR scan or UPI ID |
Pay by swiping, tapping, or entering card details |
Form |
Mostly RuPay or virtual cards |
Issued across all networks (Visa, MasterCard, etc.) |
Accessibility |
High — even accepted at small merchants with UPI QR |
Limited to merchants with card machines |
UPI credit cards offer several ways to earn rewards while maintaining payment convenience. Here’s how you can benefit:
Some cards offer fixed cashback rates (e.g. 1% via official apps, 0.5% via others) on eligible UPI spends
Earn points on groceries, utilities, fuel, or travel when paid via UPI, just like regular card transactions
Cards co-branded with retail platforms may offer points or discounts on UPI purchases made via their apps
Rewards can often be redeemed as vouchers, merchandise, or even statement credit, depending on the issuer
Seasonal and promotional rewards are often available for UPI users on select merchant categories
While UPI credit cards offer ease and flexibility, security remains essential. Here are some best practices to ensure safe usage:
Always link your card through verified apps
Keep your PIN private and never enter it on suspicious or third-party websites
Always double-check QR codes and UPI IDs before making payments, especially offline
Activate SMS and app notifications for all UPI transactions to track activity in real time
If you notice any suspicious transaction, contact your card issuer immediately and block the card if needed.
Whether you are scanning QR codes at a store or making payments through mobile apps, using a UPI credit card safely ensures both convenience and peace of mind.
Many users overlook key aspects of responsible usage, which can lead to unnecessary fees or credit score issues.
Here are common mistakes to avoid:
UPI payments are fast, which may lead to overspending. Track your usage regularly to avoid maxing out your credit.
Just like traditional cards, UPI credit card bills must be paid on time to avoid interest and penalties.
Ensure your card is correctly linked and active on the UPI app to avoid failed transactions.
Avoid linking your card through unverified platforms that may compromise data security.
Not all UPI spends may be eligible for rewards. Read the issuer’s terms to know where and how points apply.
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| 1min read
Posted on 16 May
Roshani Ballal
Academy by Bajaj Markets
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