India’s YES BANK has announced it is introducing UPI payments through RuPay Credit Cards so customers can more easily make secure credit card-based transactions.
The new feature means customers can now link their YES BANK RuPay Credit Card with UPI-enabled apps such as BHIM, PhonePe, Paytm, Google Pay, Slice, MobiKwik and PayZapp, among others, the banks said.
In addition, they can access the ‘credit-free’ period feature on a UPI platform, which was earlier only limited to point-of-sale/e-commerce-based transactions.
Existing customers who do not have a RuPay Credit Card can instead link a virtual YES BANK RuPay Credit Card with their existing UPI app.
Speaking on the launch, Mr. Rajan Pental, Executive Director, YES BANK, said, “Today, YES BANK powers nearly 40% of all the UPI merchant transactions in the country. Given our digital prowess, over the years, we have built capabilities that can power digital transactions at scale, thereby impacting the lives of millions of customers. The launch of our UPI payments facility on RuPay Credit Cards is a testament to the effort, through which, we aim to provide customers with a rewarding and convenient banking experience.
He added: “With this collaboration, we aim to further strengthen India’s march towards establishing a digitally empowered economy, while providing a safe, secure and seamless payment experience for customers.”
India’s Unified Payments Interface (UPI) system, which was launched in 2016 for public use, is increasingly being seen as an approach that can be followed on a global scale. Experts have called recently on the rest of the world to follow suit in adopting the system, citing proven results in reducing barriers to financial inclusion.
Approximately 7.2 billion UPI transactions took place in India, last year, representing 50% of all transactions in a country of 1.4 billion people, of which the majority are the emerging middle class or the lower socioeconomic segment.
The instant payment system, which was developed by National Payments Corporation of India (NPCI), facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. It allows for practically instant money transfer between bank accounts via one single application, so consumers can send and receive money, pay bills and authorise payments on one interface in a single step, simplifying the whole online transaction process.
On the launch of UPI payments through RuPay Credit Cards Ms. Praveena Rai, Chief Operating Officer, NPCI, said, “With the integration of YES BANK RuPay Credit Card on UPI, individuals can make seamless transactions across online and offline platforms on RuPay’s highly secure network, eliminating the necessity of physically carrying their card. As the demand for credit cards continues to rise in the country, RuPay Credit Card on UPI is changing the perception of credit consumption and has the potential to deepen “credit penetration particularly in semi-urban and rural areas”.