Ultimate Guide: Future Of Credit Card And UPI Payments

In this modern world of finance, only one thing is constant, i.e., change. For years, credit cards have dominated the realm of cashless transactions. But in recent times, the one technology that has truly become part of India’s everyday life is the Unified Payments Interface (UPI). It’s convenient, widely accepted, and a relatively secure payment option. Both of these payment options offer unique advantages, and combining them can redefine the future of the payment environment.

1. UPI: The Rising Star

UPI was launched back in 2016 and has revolutionized the banking industry and has provided banking services to the remotest locations and people throughout the country, irrespective of economic background. The UPI payments have been seeing enormous growth, as per the reports from the National Payments Corporation of India (NPCI). Online payment with UPI offers instantaneous, round-the-clock transactions directly between the bank accounts.

One of the major pros of using UPI is speed, as transactions with the UPI QR code app are completed in real time, even on holidays and weekends. Low-Cost to Zero-Cost, as almost all transactions on UPI are free, and some payment apps charge very minimal fees. The only con of UPI is the ease of speed of transactions can often lead to impulsive overspending.

2. Ever-Evolving Credit Cards

Credit Cards have been the go-to BNPL method for millions over decades. There are more than 85 million credit cards issued as of March 2023. Over time, they’ve evolved to incorporate features like contactless payments, biometric security, credit card cashback, and instant notifications. The improvement of the financial structure in the country is projected that the Credit Card market will continue to experience significant growth similar to the period of 2018-2023.

The pros of having a credit card are they offer global acceptance, i.e., credit cards are universally accepted, making them indispensable for international transactions. Utilization of credit cards also helps you to have a good credit score, which is essential for future financial endeavors. The major cons of credit cards are interest rates, as the ease of spending can lead to debt accumulation if you’re not wary of your due dates.

3. UPI’s Credit Adoption

As we gaze into the crystal ball of financial tech evolution, a few trends stand out. RuPay cards have witnessed exceptional growth since its launch and have attained a substantial share in the credit card market. Modern-day customers are opting for UPI quick bill payment apps and contactless payments over card-led payments. Integration of UPI with credit cards will provide an easy and convenient way for consumers to make payments.

Many third-party app providers and Payment Service Providers (PSPs) are working together to facilitate UPI payments for credit card transactions. These third-party apps provide the connection between the banks, while PSPs provide the technology to process the payments securely. Merging the entire lifecycle of payment on a single platform brings in a great deal of convenience and resolves accessibility problems as well.

Whether you’re a die-hard user of credit cards or a UPI enthusiast, the future promises exciting advancements in both. The increasing awareness and accessibility of Rupay credit cards will streamline the UPI integration process. UPI payment apps will play a critical role in the ecosystem by streamlining the payment experience and making it more convenient and accessible, all with rewards in the form of UPI cashback.