SBI, ICICI Bank, and Axis Bank to bring Rupay credit card on UPI platform
Rupay-based credit card on UPI platform: By March 2023, State Bank of India (SBI), ICICI Bank, and Axis Bank want to start issuing RuPay credit cards over the UPI. Currently, the RuPay credit card segment on the UPI platform is live with three public sector banks—Union Bank of India, Punjab National Bank, and Indian Bank—and one private sector bank—HDFC Bank.
Rupay-based credit card on UPI platform: Key Points
- The Reserve Bank of India authorised the connection of credit cards to UPI in June; UPI had previously been utilised as a “pay now” option.
- Users will benefit from more convenience as a result of the change, which will also expand the adoption of digital payments.
- For online financial transactions, RuPay is a technology platform that offers end-to-end security solutions.
- Credit cards are not offered by RuPay. In India, only banks have the authority to issue credit cards.
- The bank will use the RuPay technology network when a customer uses a RuPay credit card.
- Here, RuPay is in charge of the technology connection to ensure that the transaction goes off without a hitch.
- Every transaction would be reimbursed by the bank to RuPay.
Factors of popularity of UPI
- The zero MDR is one of the main factors contributing to UPI’s popularity.
- MDR is a charge that merchants pay to banks for processing payments that is based on a portion of the transaction.
- While other debit cards have a fee ranging from 0.4% to 0.9%, RuPay debit cards do not have an MDR.
The MDR for credit cards, which ranges from 2% to 3% of the transaction value, has no ceiling, though. Compared to Mastercard or VISA credit cards, RuPay credit cards often have a lower MDR.