Whether you’re from a bustling metropolis or a sleepy town, chances are you have used UPI at some point in time. UPI is now more than just a payment system, it’s a revolution, empowering millions and driving growth. This innovative payment system has revolutionized the way Indians transact, making it seamless, secure, and inclusive. According to the Reserve Bank of India, UPI clocks in around 360 million transactions a day,  and has gone on to become India’s most favoured method of payment due to its unparalleled convenience. Among the many innovations that have reshaped the way we make payments, Razorpay’s latest integration of credit cards and wallets into UPI is yet another milestone for digital payments. Read on to find out why.

Recognizing the potential for financial transformation

PPIs (prepaid payment instruments) are a hassle-free payment method with one-step payment and superior success rate. However, it only accounted for 5.3% of transactions in March 2023. Similarly, in spite of the credit card industry showing steady growth over the past few years, with spending growing by 30%, only 6% of Indians have access to a credit card. This goes to show that these domains have not been sufficiently tapped into. NPCI, in partnership with RBI, is looking to change the way Indians use wallets and credit, making it more accessible to all. With UPI’s country-wide reach across tier-1 cities and small towns alike, they are taking bold steps towards creating synergy between these platforms. 

Razorpay is taking the lead to drive this adoption, enabling wallets and credit cards on UPI for its entire user base. Bridging the gap between traditional and digital finance, this move offers further convenience and flexibility to customers.

Unifying Wallets & Credit cards with UPI: What’s the big deal?

Traditionally, credit cards and digital wallets have operated as separate entities, each offering distinct advantages and services. Credit cards allow users to borrow money up to a predetermined credit limit, while digital wallets enable easy and secure digital transactions by storing money electronically. The convergence of these two financial instruments with UPI brings the best of both worlds to the fingertips of consumers.

How does it work?

For credit cards, users can link their credit cards to UPI in a manner similar to linking a bank account. For wallets, users with fully authenticated KYC wallets can initiate UPI payments directly within the wallet application.

Advantages of Credits Cards on UPI

  1. Convenience: Users can make credit card payments directly through their UPI apps, eliminating the need to carry around credit cards everywhere or switching between multiple platforms for payment. 
  2. Cost reduction: With credit card payments happening directly through UPI apps, there is a reduction in costs of maintaining a point-of-sales (PoS) / card machine.
  3. High Order Values: Driven by an expanding credit ecosystem, expect an increase in average order values.
  4. Bill Management: UPI apps provide a consolidated view of credit card statements and due dates, helping users manage their finances more efficiently.
  5. Reward Points: With the extensive use of UPI for payments, Credit cards on UPI will unlock increased rewards, cashback and other perks.
    Note: This method is currently available only for Rupay credit card holders

Advantages of Wallets on UPI 

  1. Simplified Transactions: Users can directly link their digital wallets to UPI apps and use their wallet balance for various everyday transactions, without dipping into savings accounts.
  2. Cost reduction: Businesses can enjoy cost savings by eliminating individual integrations with multiple wallet issuers.
  3. Wider Acceptability: Regardless of the wallet being used by the customer, there is broad acceptance of wallet payments through UPI. 
  4. Improved success rates: By reducing errors related to incorrect UPI PIN and insufficient funds, wallets increase UPI’s payment success rates.


The availability of credit cards and wallets on UPI marks a significant stride in India’s journey towards a cashless economy. Razorpay is excited to be championing this acceleration to a truly digital and financially inclusive future by honing the power of UPI to make the payment experience more convenient. Merchants can now sit back and relax as Razorpay has already enabled these payment methods. 

If you have any questions, please visit our FAQ section on Credit Cards on UPI.
You can find our FAQ section on Wallets on UPI here.

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    Jeanne Rozario
    Author Jeanne Rozario

    A devoted dog cuddler with an appetite for all things food, TV shows and rock music.

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