UPI credit cards combine the benefits of instant digital payments with the flexibility of credit. They allow you to make UPI transactions without directly debiting your bank account.
What is a UPI Credit Card?
While traditional UPI payments deduct money from your bank account in real time, UPI credit cards let you pay via UPI apps like PhonePe while charging the amount to your credit card. This means your bank statement will show a single consolidated payment when you settle your credit card bill, rather than multiple daily transactions.
Key Benefits of UPI Credit Cards
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Wider Acceptance
Many small vendors and offline merchants accept only UPI payments but not credit or debit cards. A UPI credit card enables you to pay via UPI even when card machines are unavailable. -
Interest-Free Credit Period
Just like regular credit cards, UPI credit cards offer an interest-free period of up to 45 days, allowing you to spend now and pay later without immediate deductions from your bank account. -
Rewards and Cashback
Unlike debit cards, UPI credit cards offer reward points, cashback, and discounts on UPI transactions, making everyday spending more rewarding. -
Enhanced Security
UPI credit cards come with fraud protection, zero-liability policies, and two-factor authentication, offering better security compared to linking your savings account directly to UPI. -
Credit Score Improvement
Using a UPI credit card and making timely repayments can help build your credit score, improving your chances of securing better loans and credit offers in the future.
Would you consider using a UPI credit card for your daily transactions?