The a lot awaited linking of bank cards with UPI for making cellular transactions goes to be a actuality quickly. The Reserve Bank of India on Wednesday (eighth June 2022) proposed to permit linking bank cards with UPI for funds. Initially, this facility will likely be out there for Rupay Credit Card customers solely.
Experts say that linking of bank card with UPI will additional enhance the utilization of UPI, offering customers one other choice to selected how they need to pay.
“Linking of credit card to UPI was always expected and will turn out to be a great payment option. This will further increase the usage of UPI even for large ticket items as the users can have balanced option to choose how they can pay,” stated Muralidharan Srinivasan, Head of Payments, APMEA Region, FIS, a monetary services firm.
“Thus, it will widen the digital payments footprint in India, bolster merchant partnerships of card networks starting with home-grown payments system- RuPay and eventually other international players like Visa and Mastercard and elevate customer payments experience,” he added.
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The Rupay Credit Card and UPI linking can even pave manner for different geographies to adapt UPI a lot quicker and simpler.
“RBI’s latest announcement for the extension of linking UPI to credit cards is a great move towards the cashless economy,” stated Srinivasan.
According to RBI, Credit Card-UPI linking will extra avenues and comfort to the shoppers in making funds by UPI platform.
Anjan Dasgupta, Partner, DSK Legal, stated that linking UPI platform with bank card will immensely profit clients. However, this linking facility shouldn’t be restricted to Rupay bank cards solely.
“Given the market leading reach of UPI payments, linking the UPI platform with credit cards will immensely benefit the credit card customers. However, to keep a level playing field in the credit card market this should not be just restricted to credit cards using the RuPay payment processing network,” Dasgupta informed FE Online.
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“All credit cards using payment processing networks like Visa, Mastercard and Amex etc. should be allowed immediate access otherwise this initiative would seem discriminatory specially since RuPay is an Indian financial services and payment service system, conceived and launched by the NPCI. The others are all foreign networks. I don’t see a reason why this is only going to be first rolled out with RuPay credit cards. System development can be completed simultaneously for all credit cards,” he added.
Source: www.financialexpress.com”