Credit cards in India are no longer just about swiping at POS machines or entering details for online shopping. With the launch of UPI-linked credit cards, the payment experience has undergone a huge transformation. Now, you can use your credit card just like a debit card on UPI apps such as Google Pay, PhonePe, and Paytm – but with all the benefits of rewards, cashback, and extended credit.
This move by NPCI (National Payments Corporation of India) has opened new possibilities for both consumers and banks, creating one of the biggest shifts in India’s digital payment ecosystem.
What Are UPI-Linked Credit Cards?
UPI-linked credit cards allow users to link their credit card directly to UPI apps instead of their bank account. Transactions are then routed via UPI, while the payment is charged to your credit card.
Currently, RuPay credit cards are supported on UPI, but other networks like Visa and Mastercard are expected to join soon.
Benefits of UPI-Linked Credit Cards
- Wider Acceptance
- UPI is accepted almost everywhere, including local shops, street vendors, and online apps.
- Linking a credit card means you can pay even at outlets that don’t have card-swipe machines.
- Earn Rewards on Daily Spends
- Grocery, food delivery, cab rides – everyday UPI spends now earn reward points or cashback.
- No Need to Carry Physical Cards
- Tap your phone, scan QR codes, and pay securely using your credit card without swiping.
- Increased Credit Utilization
- Salaried individuals can manage monthly cash flows better since UPI transactions go on credit.
- Secure Transactions
- Two-factor authentication and UPI PIN add extra security to credit card transactions.
Things to Keep in Mind
- Limited Networks (as of now): Only RuPay cards can be linked to UPI.
- Transaction Limits: Per-transaction and daily limits may apply.
- Merchant Fees: Some small merchants may resist accepting UPI credit payments due to MDR (Merchant Discount Rate) charges.
- Discipline Needed: Since UPI makes payments super easy, overspending on credit cards can be a risk.
Best UPI-Linked Credit Cards in India (2025)
Here are some popular RuPay credit cards you can link to UPI apps:
- HDFC Millennia RuPay Credit Card – Great for cashback on shopping & UPI spends.
- ICICI Coral RuPay Credit Card – Balance of lifestyle benefits & UPI acceptance.
- Axis Bank Select RuPay Credit Card – Rewards on travel & dining spends.
- SBI SimplyCLICK RuPay Credit Card – Good for online shopping + UPI payments.
The Future of UPI-Credit Cards
- Visa & Mastercard expected to join soon → bigger card acceptance.
- More banks will launch UPI-only credit cards targeting Tier-2 and Tier-3 users.
- AI-driven spend insights & rewards personalization will make them even more appealing.
Final Thoughts
UPI-linked credit cards are a game-changer for Indian consumers. They combine the ease of UPI payments with the benefits of credit cards, making them an excellent tool for both convenience and savings.
If you are a regular UPI user, switching to a RuPay credit card on UPI could help you maximize rewards on your daily spends while enjoying the flexibility of credit.