How to Make UPI Payments Using Credit Card?

UPI has emerged as a game-changer in the financial landscape of many countries, enabling seamless, instant, and cashless transactions.

UPI has expanded its scope to include a wide range of services, including utility bill payments, online shopping, and even merchant transactions.

While UPI is predominantly associated with bank accounts, an exciting development has taken place—the ability to make UPI payments using credit cards.

This innovation not only amplifies the convenience factor but also allows credit cardholders to harness the rewards, cashback, and other benefits offered by their credit card providers.

In this article, we will discuss how to make UPI Payments using a Credit Card, using Payment apps like Paytm, PhonePe, etc.  

How to Make UPI Payments Using Credit Card

What is UPI?

UPI stands for Unified Payments Interface which is a world renounced real-time payment system developed by the National Payments Corporation of India (NPCI).

UPI enables individuals to instantly transfer money between bank accounts through a mobile platform, making it a convenient and secure method of digital payment.

The UPI system operates on a unique identifier known as a Virtual Payment Address (VPA), which is linked to a bank account.

 Instead of sharing sensitive information such as bank account numbers and Bank IFSC code, users can simply provide their VPA to send and receive money.

The key benefits of UPI include its instant nature, ease of use, and interoperability across different banks.

UPI has significantly reduced the reliance on cash transactions and traditional payment methods, offering a secure and efficient alternative in the digital era.

How to Make UPI Payments Using Credit Card?

The following is the step-by-step instruction on how to make UPI Payments using a Credit Card-

  • To make UPI payments using your credit card, start by downloading and installing a UPI-enabled payment app on your smartphone like Paytm, PhonePe, etc.
  • After installation and activation of the UPI app, you’ll have to link your credit card with the UPI app which you can do by navigating to the payments option and clicking on the Add/Link Bank Account option
  • Now, provide your credit card details like card number, card name, expiry date, CVV, etc. followed by clicking on Add button
  • An OTP will be sent to your registered mobile number which you’ll have to enter in the given field
  • Now, you’ll have to set up the 4- or 6-digit UPI PIN which will be used to authorize UPI transactions
  • You’ll be assigned a VPA automatically which is editable and you can change your VPA as per your desire


Can I make UPI payments using any credit card?

Yes, most UPI-enabled payment apps allow you to link and use any valid credit card issued by a recognized bank.

Is there any fee or additional charges for making UPI payments with a credit card?

Generally, UPI transactions using credit cards do not incur any additional charges. However, it’s advisable to check with your credit card provider or payment app for any specific terms or fees associated with such transactions.

Can I make UPI payments using my credit card for online shopping?

Yes, many online platforms and e-commerce websites now accept UPI payments. You can select UPI as the payment option during checkout and complete the transaction using your linked credit card.

Are there any transaction limits for UPI payments using a credit card?

The transaction limits of UPI Payments are Rs.1 Lakhs per transaction per day limit.

Can I use UPI payments with a credit card for international transactions?

Yes, various countries accept UPI Payments internationally. Countries like UAE, France, Bhutan, Nepal, etc. use UPI Payments in the country. There are other countries as well who are in talks with India to implement the UPI payments system in their country.

Can I use UPI payments with a credit card for cash withdrawals?

UPI payments are primarily intended for fund transfers and online transactions. Cash withdrawals are not typically supported through UPI using a credit card.

Can I earn rewards or cashback on UPI payments made using a credit card?

Yes, depending on your credit card provider, you may be eligible to earn rewards, cashback, or other benefits on UPI payments made using your credit card. Check with your credit card provider for specific details.

What happens if my UPI transaction fails while using a credit card?

In case of a failed UPI transaction, the amount deducted from your credit card will usually be refunded automatically to your credit card account within a specified period.

Can I link multiple credit cards to a UPI-enabled payment app?

Yes, you can link and manage multiple credit cards within a UPI-enabled payment app. This allows you to choose your preferred credit card for each transaction, based on your convenience or reward preferences.