CRED, a community of creditworthy individuals, brands, and institutions, has joined forces with NPCI to introduce RuPay credit card-based UPI payments for its members. This collaboration brings a range of benefits for CRED users, as it allows them to make UPI transactions using their RuPay credit cards issued by various banks such as HDFC Bank, ICICI Bank, Yes Bank, Axis Bank, BOB Financial Solutions, Canara Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, and Union Bank.
Key highlights of this new feature include a personalised CRED experience, offering smart instrument recommendations, smart statements, rewards management, and brand offers. With the integration of RuPay credit cards in UPI, CRED aims to provide its members with a comprehensive suite of payment options, making transactions more convenient.
By enabling credit card transactions on UPI, members can now use their credit line for day-to-day expenses. This aspect also eliminates the need to carry physical cards, enabling seamless payments using saved cards and providing the convenience of tracking and paying bills directly within the CRED app.
In the company press release NPCI representatives expressed enthusiasm for the integration, stating that it revolutionises the way credit is consumed and promotes the adoption of digital payments with the backing of credit in India. NPCI's goal is to create a user-friendly digital payment experience, and this feature allows UPI customers to access more flexibility and new payment options at merchant outlets.
Officials from CRED expressed excitement about India's financial innovation through UPI and highlighted that enabling credit card transactions on UPI with the integration of RuPay will help India in its digitalisation efforts. This move is intended to allow users to have more control over their spending decisions and enjoy a frictionless payment experience.
In addition to the launch of this feature, CRED created an ad film showcasing the advantages of linking RuPay credit cards to UPI through CRED. The film is satirical in nature, encouraging viewers to manage their finances better with credit cards.
According to investopedia.com, the Unified Payments Interface (UPI) is a real-time payment system regulated by India's central bank, the Reserve Bank of India (RBI). Its purpose is to facilitate peer-to-peer inter-bank transfers through a simple two-click factor authentication process. UPI operates on a mobile platform and enables the transfer of funds between two bank accounts.
This system leverages existing platforms such as Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS) to ensure smooth settlement between accounts. UPI supports both push (pay) and pull (receive) transactions and accommodates over-the-counter or barcode payments, as well as multiple recurring payments such as utility bills, school fees, and subscriptions.
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