How to make UPI payments by credit or debit card
“UPI has grown to become the most comprehensive payment method in India. There are currently over 26 million unique users and 5 million merchants integrated on the UPI platform. In May 2022 alone, 594.63 million transactions valued at Rs. 10.40 billion were processed through UPI. UPI currently facilitates transactions by linking savings/checking accounts through users’ debit cards. The interoperability of PPIs has also made it easier for PPIs to access the UPI payment system to complete transactions. To further deepen its reach and usage, it is proposed to allow linking of credit cards to UPI. Initially, Rupay credit cards are activated with this setup. This arrangement aims to provide customers with more options and convenience in making payments through the UPI platform. This facility would be available after the required system development is complete. Necessary instructions will be issued separately to NPCI,” says RBI’s statement on development and regulatory policy.
Initially, UPI payments could be made from a bank account by linking your bank account to UPI. However, later UPI apps also allowed individuals to add credit and debit cards to make payments to merchants. So you could not make payments to individuals (non-merchants) with your UPI linked card.
By adding their credit or debit card to UPI apps, they can pay without having to swipe at the POS device. Simply scan a QR code and select the added credit/debit card as the payment method to make the payment. Once you initiate a payment through the UPI app using a debit or credit card, a one-time password (OTP) will be sent to your registered mobile number to complete the payment.
Learn how to pay by credit or debit card with UPI in popular apps like GPay and PhonePe.
Pay by credit or debit card with Gpay
To pay with a credit or debit card using GPay, you must first add the cards to the UPI app. According to the GPay website, an individual can add debit and credit cards from the following banks as long as they operate on Visa and MasterCard payment gateways.
h) HSBC Bank
j) OneCard (Visa credit card)
Follow the steps below to add the credit or debit card to Gpay:
Step 1: Open the app and click on your profile picture.
Step 2: Click on the payment methods. The app will show you current bank accounts that have been added in the app. Click Add Credit or Debit Card to add your card to Gpay.
Step 3: You will need to enter your card number, expiration date, CVV, and the cardholder’s name and billing address. Click on “Save”.
Step 4: You must accept the issuer’s terms and conditions. Click Activate to start paying in stores and merchants.
You need to verify your card. For additional authentication, a one-time password (OTP) will be sent to your registered mobile number. Once you’ve verified your card, you can use it to pay for transactions.
Where can you pay with credit card via GPay?
According to the GPay website, you can use your credit or debit card for the following types of transactions:
a) Tap & Pay at NFC-enabled payment terminals
b) Bharat QR code based payments at online and offline merchants
c) Bill payments and top-ups with Google Pay
d) Online payments via Android apps Myntra, Dunzo, Yatra, MagicPin, Coolwinks, EaseMyTrip, Confirmtkt.
Pay by credit or debit card with the PhonePe app
To pay by credit or debit card with the PhonePe app, you must first add the credit or debit card as one of the payment methods. The steps to add the credit or debit card in the PhonePe app are the same as mentioned above.
Check the payment methods in the PhonePe app settings. Click Add New Map. You will need to enter the card details which will be verified using the penny drop method (by charging your account with Re 1).
Once the card has been successfully verified, the card can be used for payments.
According to the PhonePe website, payments can be made by credit card for products and services offered in the PhonePe app or to PhonePe dealers and sellers.
Unlike GPay, where you can only add Visa, Master-based payment gateway cards, PhonePe allows all domestic debit and credit cards issued by Visa, Mastercard, Maestro, Diners, American Express, and Rupay.
Pay with credit or debit card
Similar steps must be taken to add a credit or debit card in the Paytm app. Once the card has been successfully verified, it can be used for payments. The Paytm app also supports all debit and credit cards for payments.