MobiKwik, a leading fintech company in India, has achieved a significant milestone by becoming the first fintech app to support RuPay Credit Cards on UPI. This development brings a new level of convenience to the millions of Indians who rely on UPI for their daily transactions. With approximately 50 million users possessing one or more credit cards, this advancement plays a vital role in India’s ongoing efforts to establish a cashless economy.
By directly linking RuPay Credit Cards to UPI IDs, MobiKwik’s customers can now easily make payments to merchants by scanning UPI QR codes and using UPI PIN for payment authentication. This feature not only ensures a smooth and secure payment experience but also opens up fresh opportunities for Indian merchants to participate in the credit ecosystem. With the acceptance of credit cards through asset-lite QR codes, merchants can now operate without the need for traditional point-of-sale terminals.
Moreover, this integration paves the way for the development of new credit products on existing UPI infrastructure, contributing to enhanced credit penetration in underserved smaller cities. RuPay Credit Cards are issued by major banks for both commercial and retail segments, empowering a wider range of users to benefit from this advancement.
The integration of RuPay Credit Cards with UPI aligns with the vision of the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) to expand credit card acceptance among merchants who are not part of the conventional credit ecosystem. By leveraging the existing UPI rails, this integration aims to make credit cards more accessible and widely accepted across various merchant networks.
What is UPI?
Unified Payments Interface (UPI) is a system that seamlessly integrates multiple bank accounts, facilitates fund routing, and enables merchant payments through a single mobile application. The UPI ID represents the Virtual Payment Address (VPA) that senders use to transfer funds to recipients.
MobiKwik’s credit card support on UPI not only enhances the payment experience for its customers but also empowers Indian merchants to participate in the credit ecosystem by accepting credit cards through asset-lite QR codes, eliminating the need for traditional point-of-sale terminals. This integration is expected to drive the development of new credit products on existing UPI infrastructure, ultimately increasing credit penetration in tier 2, 3, and 4 cities, which have historically been underserved.
“We are excited to collaborate with MobiKwik on this industry-first initiative to support credit cards on UPI. This integration will provide Indians with a seamless, digitally-enabled credit card experience, offering increased convenience and opportunities for credit card usage. We believe this partnership will expedite the go-to-market efforts and contribute to the growth of credit penetration in the country,” stated Nalin Bansal, Chief of Corporate and Fintech Relationships and Key Initiatives at NPCI. The integration of RuPay Credit Cards with UPI adheres to the vision set forth by the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) to promote credit card acceptance among merchants who are currently outside the conventional credit ecosystem. This new feature will follow the existing UPI standard transaction limits.
How to set up MobiKwik UPI payment with RuPay credit card?
- If you’re a new user, then start by downloading the MobiKwik app from the official website or app store.
- Sign in to your account if you are an existing user or sign up to create a new account.
- Once you are logged in, navigate to the Wallet section and select BHIM UPI.
- Choose your bank from the list provided. The app will fetch your bank account details automatically. Alternatively, you can manually link your RuPay credit card to use as UPI.
- Congratulations! Your Mobikwik UPI ID with the handle “@ikwik” has been successfully created.
Now, you can do UPI payments with your Rupay credit card which you’ve linked with MobiKwik.