PhonePe becomes first payment app to link 2 lakh Rupay credit cards to UPI
The company has already enabled the acceptance of Rupay Credit Cards on UPI across 12 million merchant outlets in the country, achieving the highest merchant penetration in the ecosystem. This widespread acceptance has ensured that customers have ample opportunities to utilize their Rupay credit cards for transactions through UPI.
Digital payment service provider PhonePe on Thursday announced that it has become the first digital payments app to enable the linkage of 2 lakh Rupay credit cards to the Unified Payments Interface (UPI). In addition, it has also processed a Total Payment Value (TPV) of Rs 150 crore through Rupay Credit on UPI. TPV refers to the total transaction value processed through the platform in a given time period.
Notably, linking the credit card to UPI simplifies the utilisation of credit for customers by leveraging the flexibility and widespread acceptance of UPI.
According to PhonePe, the company has already enabled the acceptance of Rupay Credit Cards on UPI across 12 million merchant outlets in the country, achieving the highest merchant penetration in the ecosystem. This widespread acceptance has ensured that customers have ample opportunities to utilise their Rupay credit cards for transactions through UPI.
Credit cards work on a deferred payment basis, allowing customers to use products or services now and pay for it later. With the integration of Rupay credit cards into the UPI ecosystem, users now have an added advantage as they can seamlessly utilise their credit cards through the UPI platform, providing a viable alternative to swiping physical debit or credit cards. Several lenders across the country have already linked their Rupay credit cards to the Unified Payments Interface (UPI) network.
“Linking credit cards to UPI apps will allow credit card customers to participate and leverage the UPI QR ecosystem created by offline payment players like PhonePe, G-Pay, etc. to make fast, secure, and convenient payments to small merchants, along with the benefits of credit cards, including rewards,” said Mehul Mistry, Global Head, Strategy, Digital Financial Services & Partnerships, Wibmo, a PayU company while talking to CNBC-TV18.com.
PhonePe aims to collaborate closely with the National Payments Corporation of India (NPCI) to further expand the penetration of Rupay Credit in the country through enhanced functionalities.
PhonePe has also been pushing customers to embrace Rupay credit cards through UPI through intuitive nudges within its app.
Sonika Chandra, Vice President, Consumer Platform and Payments, PhonePe, felt that Rupay cards on UPI will revolutionise the access and use of credit in the ecosystem. “We are committed to offering comprehensive solutions that cater to the evolving needs of our customers and merchants.”
She also said that a merchant discount rate (MDR) was applicable for Rupay on UPI and merchant partners on PhonePe are enthusiastically adopting it.
(Edited by : Anushka Sharma)
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