Razorpay to support credit cards on UPI

Key updates-

• With the aim to further strengthen digital payments and boost India’s credit penetration, the platform announced its readiness to support Credit Card Transactions on Unified Payments Interface (UPI).
• Now, customers of HDFC Bank, Punjab National Bank, Union Bank and Indian Bank will be the first to enjoy the benefits of this innovation. 
• This offering is in line with the National Payments Corporation of India (NPCI) and the Reserve Bank of India’s (RBI) latest innovation in the digital space. 
• Now, with RuPay credit cards being enabled on UPI, Razorpay merchants can begin accepting credit card payments on UPI, with minimal changes to their existing setup. 
• This disruption, which shares Razorpay’s focus on catering to the ever-evolving needs of merchants and delivering greater convenience, is made possible in partnership with Axis bank.
• At present, UPI enables customers to make transactions through their bank accounts. 
• However, linking credit cards with UPI will ensure that customers will no longer have to carry their credit cards with them at all times for payments. 
• Founded by IIT Roorkee alumni, Razorpay aims to revolutionize money management for online businesses by providing clean, developer-friendly APIs and hassle-free integration.
• Approximately 250 million Indians use UPI for their day-to-day transactions, and nearly 50 million users have one or more credit cards.  
• The credit card industry, as per RBI’s data, despite growing steadily at the rate of 30% over the last three years, remains primarily underpenetrated with only 6% of Indians having access to a credit card. 
• On the other hand, UPI has recorded over 731 crore transactions in Oct 2022 alone being used by more than 40% of Indians.