Unified Payments Interface (UPI) transactions conducted through RuPay credit cards have experienced an extraordinary surge, recording a 91% growth in transaction value during the first seven months of FY25 compared to the entire FY24. As per data shared by the Minister of State for Finance, Pankaj Chaudhary, UPI transactions on RuPay credit cards reached a staggering ₹638 billion from April to October 2024, compared to ₹334 billion in FY24.

In terms of transaction volume, the figures nearly doubled, witnessing a 106% increase, with 750 million transactions during this period compared to 363 million in FY24. This rise highlights the growing acceptance and convenience of linking RuPay credit cards to UPI.

The Reserve Bank of India had introduced the ability to link credit cards to UPI in June 2022, initially focusing on RuPay credit cards. As RBI Governor Shaktikanta Das noted, this move aimed to provide customers with greater opportunities to use their credit cards and encourage merchants to embrace the credit ecosystem through assets like QR codes. While RuPay credit cards have seen impressive adoption, credit cards from other providers, such as Visa and Mastercard, are still awaiting linkage.

UPI Transaction Trends in November 2024

In November 2024, UPI transactions across India reached 15.48 billion, marking a 38% year-on-year growth compared to November 2023. The total value of these transactions was ₹21.55 lakh crore, reflecting a 24% increase year-on-year. On a daily basis, UPI processed an average of 516 million transactions, valued at ₹71,840 crore.

However, these numbers fell slightly short of October 2024, which holds the record for the highest-ever UPI transactions since its launch in April 2016. In October, 16.58 billion transactions were conducted, worth ₹23.5 lakh crore.

Why the Growth Matters

The surge in UPI transactions using RuPay credit cards demonstrates the platform's increasing reliability and penetration into the Indian payments ecosystem. By allowing consumers to link their credit cards to UPI, the National Payments Corporation of India (NPCI) and the RBI have significantly enhanced the usability of credit cards, making it easier for customers to pay digitally across various sectors.

Moreover, this development is particularly beneficial for merchants, who can now tap into a larger pool of credit consumers without the need for costly infrastructure changes. For consumers, this move reduces dependency on cash and promotes digital transactions, which are both secure and convenient.

Future Prospects for UPI and Credit Card Linkage

While RuPay credit cards are leading the way in UPI adoption, the market is eagerly awaiting the inclusion of other major credit card providers such as Visa and Mastercard. This expansion could further boost UPI’s reach, making it the most preferred digital payment method for both consumers and businesses.

Additional UPI Insights

• UPI's seamless interface has become the backbone of India’s digital payment ecosystem, facilitating transactions across urban and rural areas alike.
• The NPCI is consistently working on innovations, ensuring faster processing times, and enabling greater security for users.
• With monthly transaction values crossing ₹20 lakh crore regularly, UPI continues to dominate India’s digital payment landscape.

This remarkable growth in UPI transactions is a testament to India’s digital transformation journey, setting the stage for further innovations in the payments industry.

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