What is UPI and how do UPI-enabled credit cards work?
UPI has transformed how people in India send money and make payments. Now, it's gone a step further with UPI-enabled credit cards. This combines the perks of a credit card with the simplicity of UPI. And that means you can use your RuPay network credit card through UPI apps.
Here we cover:
What is a UPI-enabled credit card?
What is the UPI transaction limit?
How does UPI work?
UPI was created by the National Payments Corporation of India. It lets you to transfer money without having to share details like your bank account number. You can simply scan a QR code or use a Virtual Payment Address (VPA).
The VPA links to your bank account. So when you make a payment, you scan the QR code, enter the UPI ID, and confirm with your secure PIN. It's a safe, fast and simple alternative to cash or a credit card. You can also link different bank accounts to one app for quick and easy transactions.
Read more: 7 steps to adding credit cards to UPI apps
What is a UPI-enabled credit card?
A UPI credit card gives you the best of both. You get the benefits of a credit card, like rewards and credit limits, with the ease of making UPI payments.
All you need to do is link your credit card to a UPI app, like HSBC Simple Pay, Google Pay, PhonePe, Paytm, or BHIM. You then pay through UPI but use your credit card balance, unlike regular UPI payments where the money is taken from your bank account.
UPI credit cards are also helpful if you're somewhere that accepts UPI payments but doesn't have a credit card machine.
RuPay credit card on UPI
RuPay is India's homegrown payment network. A RuPay credit card that's integrated with UPI gives you these benefits:
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Acceptance: You can use it at any RuPay merchant outlet as well as on UPI-enabled platforms
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Convenience: Enjoy instant payments with a QR code instead of carrying a credit card or cash
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Cashback and rewards: Earn points on your purchases and get exclusive offers
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Fees: Generally lower fees, or no joining and annual fees as compared to international credit card networks
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Security: Payments are protected by a token and PIN to prevent fraud risks
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Bills: It's easy to pay for utilities, mobile, and other bills through UPI
Learn more: HSBC RuPay Platinum Credit Card rewards
What is the UPI transaction limit?
UPI transactions in India have daily limits for safety and compliance. For most users, the default UPI transaction limit is INR100,000 per day. Your limit can depend on your bank and the app you use.
For UPI-enabled credit cards, the limit depends on both the UPI platform rules and your credit card's available limit. For example, if your credit card has a limit of INR80,000, your spending will be capped when you reach that, even if UPI allows a higher limit.
How to increase your UPI limit
If your UPI transaction limit isn't high enough, you can follow these steps:
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Look at your bank's policy, to confirm how much you can raise your limit
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Check your usage – some banks increase your limit based on usage
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Request a limit increase using your banking app
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Visit your bank branch if that doesn't work
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Consider an upgrade – premium accounts often have higher limits
| Function | Pros | Cons |
|---|---|---|
| Acceptance | Pay anywhere where vendors accept UPI payments. | UPI cards currently available on RuPay network. |
| Convenience | Make payments via UPI without needing cash or cards. | Be careful of overspending if not managed carefully. |
| Spending | Earn rewards and cashback. | Spending capped by UPI and credit card transaction limits. |
| Infrastructure | Integrate your UPI card with popular payment apps. | Any UPI technical issues or downtime can affect transactions. |
| Function | Acceptance | Acceptance |
|---|---|---|
| Pros | Pay anywhere where vendors accept UPI payments. | Pay anywhere where vendors accept UPI payments. |
| Cons | UPI cards currently available on RuPay network. | UPI cards currently available on RuPay network. |
| Function | Convenience | Convenience |
| Pros | Make payments via UPI without needing cash or cards. | Make payments via UPI without needing cash or cards. |
| Cons | Be careful of overspending if not managed carefully. | Be careful of overspending if not managed carefully. |
| Function | Spending | Spending |
| Pros | Earn rewards and cashback. | Earn rewards and cashback. |
| Cons | Spending capped by UPI and credit card transaction limits. | Spending capped by UPI and credit card transaction limits. |
| Function | Infrastructure | Infrastructure |
| Pros | Integrate your UPI card with popular payment apps. | Integrate your UPI card with popular payment apps. |
| Cons | Any UPI technical issues or downtime can affect transactions. | Any UPI technical issues or downtime can affect transactions. |
How to apply for a RuPay credit card
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Find the card that best suits your spending patterns and reward goals.
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Check your eligibility, like age and income.
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Visit the HSBC site and start your online application.
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Upload documents like PAN, Aadhaar, address and income proof.
Apply for an HSBC RuPay Platinum Credit Card
Enjoy exciting rewards, exclusive perks and effortless payments with UPI.
Key takeaways
Digital payments have become an integral part of daily life in India. Combining UPI and RuPay helps you manage your spending easily and safely.
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UPI payments are a simple, secure way to pay
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UPI-enabled credit cards combine UPI convenience with credit card benefits
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RuPay makes it easy to link credit cards to UPI
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UPI transaction limits vary, but are usually capped at INR100,000
Frequently asked questions
What is the full form of UPI?
UPI stands for Unified Payments Interface. It's a real-time payment system for instant money transfers between bank accounts through a mobile platform.
How many transactions per day in UPI?
The number of UPI transactions per day is generally capped at 20 per user. But this can vary depending on the bank or UPI app being used.
How UPI works
UPI connects your bank account to a UPI-enabled app. This lets you make payments by simply entering the recipient's UPI ID or scanning a QR code. Once the payment request is authorised with a PIN, the money is transferred instantly between accounts.
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