What is a UPI Credit Card

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.

Here the steps you can follow to use a UPI credit card:

1. Get a UPI Credit Card

Apply for a credit card from an issuer that supports UPI linkage

2. Install a UPI-Enabled App

Use a recognised app like BHIM, GPay, PhonePe, or Paytm

3. Link the Credit Card to UPI

Within the app, go to 'Add UPI Payment Method', select 'Credit Card', and choose the issuing network

4. Set UPI PIN

Authenticate using your registered mobile number and set a secure UPI PIN for transactions

5. Make Payments Using UPI

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:

• Instant, Contactless Payments

UPI payments are processed instantly. When linked to a credit card, you can make contactless transactions without carrying the physical card.

• No Need to Share Card Details

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.

• Access to Rewards and Offers

UPI credit cards often carry the same benefits as standard credit cards, cashback, loyalty points, or partner discounts, even for QR-based payments.

• Increased Acceptance

UPI is widely accepted across small merchants, online platforms, and government services, expanding the usability of your credit card.

• Secure Transactions

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:

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:

1. Click on the ‘Check Eligibility’ option and enter basic details such as your mobile number, date of birth, and employment type

2. Enter the OTP received on your registered mobile number to proceed

3. Verify and confirm your pre-filled information like PAN, email ID, residential PIN code, and income details

4. Review the list of eligible UPI credit cards based on your profile and select the one that fits your needs

5. 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:

UPI credit cards offer several ways to earn rewards while maintaining payment convenience. Here’s how you can benefit:

• Cashback on UPI Transactions

Some cards offer fixed cashback rates (e.g. 1% via official apps, 0.5% via others) on eligible UPI spends

• Reward Points on Daily Purchases

Earn points on groceries, utilities, fuel, or travel when paid via UPI, just like regular card transactions

• Loyalty or Brand-specific Rewards

Cards co-branded with retail platforms may offer points or discounts on UPI purchases made via their apps

• Redemption Flexibility

Rewards can often be redeemed as vouchers, merchandise, or even statement credit, depending on the issuer

• Ongoing Offers and Campaigns

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:

• Use Trusted UPI Apps Only

Always link your card through verified apps

• Do Not Share Your UPI PIN

Keep your PIN private and never enter it on suspicious or third-party websites

• Verify Merchant Details

Always double-check QR codes and UPI IDs before making payments, especially offline

• Enable Transaction Alerts

Activate SMS and app notifications for all UPI transactions to track activity in real time

• Report Unauthorised Use Promptly

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:

• Ignoring the Credit Limit

UPI payments are fast, which may lead to overspending. Track your usage regularly to avoid maxing out your credit.

• Missing Payment Due Dates

Just like traditional cards, UPI credit card bills must be paid on time to avoid interest and penalties.

• Not Checking Linked UPI App

Ensure your card is correctly linked and active on the UPI app to avoid failed transactions.

• Using Unauthorised Apps

Avoid linking your card through unverified platforms that may compromise data security.

• Overlooking Reward Rules

Not all UPI spends may be eligible for rewards. Read the issuer’s terms to know where and how points apply.