Credit Card for UPI Payment in India

Unified Payments Interface (UPI) has revolutionized the way Indians make transactions. With instant money transfers, zero charges, and growing acceptance across merchants, UPI has become the backbone of digital payments. While UPI traditionally worked with bank accounts and debit cards, credit cards are now increasingly being linked with UPI apps, offering a powerful combination of rewards, credit limit, and convenience.

In this guide, we’ll explore how credit cards are now compatible with UPI in India, which credit cards offer this feature, the benefits, things to keep in mind, and which ones are best for UPI payments in 2025.

What is UPI and How Does It Work with Credit Cards?

UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI). It enables users to link their bank accounts and perform transactions via mobile apps like Google Pay, PhonePe, Paytm, BHIM, and others.

Earlier, UPI only allowed bank account linkage. But now, with RBI’s approval, RuPay credit cards can be linked to UPI apps, letting users pay directly through their credit card – just like debit cards or bank accounts.

Benefits of Using Credit Cards for UPI Payments

Here’s why linking a credit card with UPI is a smart move:

• Earn Rewards and Cashback: Unlike debit card UPI, credit card UPI payments often earn cashback, points, or air miles.
• Extended Credit Period: Enjoy up to 45–55 days of interest-free credit on payments.
• No Need to Carry a Physical Card: Scan and pay using your mobile phone.
• Safe and Secure: UPI is backed by two-factor authentication and is one of the safest methods of digital payment.
• Convenient for High-Value Payments: Credit cards usually offer higher limits than savings accounts.

Best Credit Cards for UPI Payments in India (2025)

The table below compares the top credit cards in India that support UPI payments:

Credit Card	Network	Annual Fee	Key Benefits
HDFC Bank RuPay IRCTC Credit Card	RuPay	₹500	Cashback on travel & UPI spends
Axis Bank RuPay Credit Card	RuPay	₹0 (Lifetime Free)	Fuel surcharge waiver, 1% cashback
BOB Financial Eterna RuPay Credit Card	RuPay	₹2,499	15x reward points, travel perks
SBI Card ELITE RuPay	RuPay	₹4,999	Lounge access, 2x rewards on UPI
ICICI Bank Coral RuPay Credit Card	RuPay	₹500	Movie discounts, reward points
YES Bank RuPay Credit Card	RuPay	₹199	Cashback & rewards on UPI spends

How to Link Credit Card with UPI App?

As of now, only RuPay credit cards can be linked with UPI apps. Here’s how you can link your RuPay credit card to UPI:

1. Download UPI App: Use apps like BHIM, Paytm, Mobikwik, PhonePe (some apps support only select banks for RuPay).
2. Add Payment Method:
   • Go to “Add Bank Account” or “Link Credit Card.”
   • Choose your bank that issued the RuPay credit card.
3. Verify and Set UPI PIN:
   • Authenticate via OTP.
   • Set a 4- or 6-digit UPI PIN for your credit card.

Once linked, you can start making payments by scanning QR codes or sending money to merchants directly from your credit card.

Things to Keep in Mind

Before using your credit card for UPI payments, consider the following:

1. Merchant-Only Transactions: You can only make merchant payments, not peer-to-peer (P2P) payments like sending money to friends or withdrawing cash.

2. Interest Charges Apply if Not Paid in Full: Like all credit cards, failing to pay the full bill by the due date will attract high-interest charges, sometimes up to 40% annually.

3. UPI on RuPay Cards Only: Currently, only RuPay credit cards are eligible. Visa and MasterCard are expected to join soon, but not available as of now.

4. App Compatibility May Vary: Some UPI apps (like Google Pay or PhonePe) might not support credit card linkage from all banks yet. BHIM and Paytm have wider support.

Popular UPI Apps That Support Credit Card Linking

UPI App	Supports RuPay Credit Card	Best Banks Supported
BHIM	✅ Yes	HDFC, SBI, ICICI, Axis, BOB
Paytm	✅ Yes	HDFC, SBI, Axis, BOB
Mobikwik	✅ Yes	ICICI, YES Bank
PhonePe	❌ Limited	Axis (in beta)
Google Pay	❌ No (as of now)	Not available yet

How to Make a UPI Payment Using a Credit Card

Once your card is linked, making a payment is simple:

1. Open UPI App (e.g., BHIM)
2. Scan the Merchant QR Code
3. Choose Linked Credit Card as Source
4. Enter Amount & UPI PIN
5. Confirm the Transaction

You’ll receive a notification and email/SMS for the transaction just like any regular credit card payment.

Tips to Maximize Rewards on Credit Card UPI Usage

• Use the card only at trusted merchant outlets.
• Choose cards that offer UPI-specific cashback or bonus reward points.
• Pay your dues on time to avoid interest and penalties.
• Combine UPI usage with monthly bill payments, recharges, or online shopping for maximum reward value.
• Opt for Lifetime Free cards if you’re just getting started.

Our Recommendation

Credit card usage through UPI is one of the most innovative changes in India’s digital payment ecosystem. With the flexibility of UPI and the benefits of credit cards, users can now enjoy the best of both worlds – rewards, convenience, and financial flexibility.

If you’re using UPI regularly for purchases, now is the time to switch to a RuPay credit card that supports UPI and start earning rewards for payments you already make every day.

As UPI integration expands across other card networks (like Visa and MasterCard), the future of seamless digital credit payments in India looks even more promising.

Frequently Asked Questions