Every day, credit cards are getting new features. In the Unified Payment Interface (UPI), applications like Google Pay, Amazon Pay, Phonepe, Paytm, and more credit cards can be linked as a payment mode resulting in increased business transactions and optimum utilization of cards. Let's understand how using credit cards as a payment method in UPI can help businesses.
7 Benefits to Businesses of Making Credit Card Payments with UPI
1. Easy To Use
You can save time for merchants and customers by adding a credit card to the UPI, as there is no need to enter the details manually except for CVV. The usage of credit cards enhanced the tap-and-pay feature of UPI. Additionally, there is no need to carry a card all the time. Credit cards linked with UPI apps enable seamless shopping. Furthermore, there are no charges for credit card payments done through UPI.
2. Multiple Offers
Credit cards give their clients many offers, rewards, and cashback. According to the credit card reward programs, you can earn multiple benefits on every spending. Customers enjoy the double benefit of getting rewards from credit cards and the UPI app after adding credit cards for UPI payments. As a result, customers likely spend more using a credit card linked to UPI.
3. Security
Applications using UPI are highly secured. Only after the mobile OTP has been input is the transaction completed. As a result, credit card payments made through UPI are highly secure. With POS terminals, clients are free from the responsibility for transaction security, and businesses are safeguarded against credit card failure.
4. Easy Credit
The user can only use the amount available in the bank account when UPI transactions are linked to the debit card or bank account. Nonetheless, users of credit cards are given access to a simple credit facility. Due to the integration of credit cards and UPI, clients are no longer required to put off purchases because of a lack of funds. By immediate funding alternatives, credit cards for UPI encourage merchants to grow their businesses more quickly.
5. Instant Money
While using their credit cards at POS machines, customers often choose EMI options for large-ticket transactions. According to the buyer's credit limit, instant payment services to the merchants are made possible by credit card payments made through UPI. So companies can realize their sales quickly.
6. Reduces Investment
To be utilized for card swipes in the business, PoS terminals must either be purchased or rented. However, with credit card payments made through UPI, retailers no longer need to invest in PoS devices and may get immediate payments for their purchases.
7. Reduces Settlement Time
In most cases, PoS transactions are finalized at T+1 or T+2. During bank holidays, businesses suffer greatly since their financial flow is restricted. Payments received through UPI that are connected to a credit card are instantly settled into the merchants' bank accounts.
How to Make UPI Payments via Credit Cards?
When paying a merchant physically or during online shopping:
1. First, open the UPI application.
2. Then, scan the merchant's QR code or mobile number.
3. Choose the preference for mode of payment via UPI.
4. Choose the preferred credit card.
5. Enter the UPI pin followed by mobile OTP.
6. The UPI payment is made through a credit card.
Conclusion
Though making payments using credit cards through UP is easy, it encourages compulsive spending and puts you in a debt trap. So, when using UPI to make payments, cardholders must exercise caution when using their credit card. However, this payment method can benefit customers and businesses if handled properly. Connect your credit card to UPI to fully utilize payments.