Whether you reside in a bustling metropolis or a tranquil town, chances are you’ve engaged with UPI at some point. UPI has transcended being just a payment system; it’s a revolution, empowering millions and propelling growth. This innovative payment system has transformed the way Indians transact, rendering it seamless, secure, and inclusive. According to the Reserve Bank of India, UPI processes around 360 million transactions daily, solidifying its status as India’s preferred payment method due to unparalleled convenience. Among the numerous innovations reshaping payment methods, Viyonapay’s recent integration of credit cards and wallets into UPI marks a pivotal moment for digital payments. Continue reading to discover why.
Recognizing the Potential for Financial Transformation
Prepaid payment instruments (PPIs) offer a hassle-free one-step payment method with a superior success rate, yet they only accounted for 5.3% of transactions in March 2023. Despite steady growth in the credit card industry—with spending increasing by 30%—only 6% of Indians have access to a credit card, indicating untapped potential in these domains. In collaboration with the RBI, NPCI aims to revolutionize how Indians utilize wallets and credit, making it more accessible to all. Leveraging UPI’s nationwide reach, spanning tier-1 cities and small towns, they are taking strides to create synergy between these platforms.
Viyonapay is at the forefront, spearheading this adoption by enabling wallets and credit cards on UPI for its entire user base. This move bridges the gap between traditional and digital finance, offering additional convenience and flexibility to customers.
Unifying Wallets & Credit Cards with UPI: What’s the Big Deal?
Traditionally, credit cards and digital wallets operated independently, each providing distinct advantages. Credit cards allow users to borrow money up to a predetermined limit, while digital wallets facilitate secure digital transactions by electronically storing money. The convergence of these two financial instruments with UPI brings the best of both worlds to consumers’ fingertips.
How Does it Work?
For credit cards, users can link their credit cards to UPI similarly to linking a bank account. For wallets, users with fully authenticated KYC wallets can initiate UPI payments directly within the wallet application.
Advantages of Credit Cards on UPI
- Convenience: Users can make credit card payments directly through their UPI apps, eliminating the need to carry physical credit cards or switch between multiple platforms.
- Cost Reduction: Direct credit card payments through UPI apps reduce the costs of maintaining point-of-sale (PoS) machines.
- High Order Values: The expanding credit ecosystem is expected to increase average order values.
- Bill Management: UPI apps provide a consolidated view of credit card statements and due dates, aiding users in managing their finances efficiently.
- Reward Points: UPI usage for payments unlocks increased rewards, cashback, and other perks for Rupay credit card holders.
Advantages of Wallets on UPI
- Simplified Transactions: Users can link digital wallets directly to UPI apps, using their wallet balance for various everyday transactions without accessing savings accounts.
- Cost Reduction: Businesses benefit from cost savings by eliminating individual integrations with multiple wallet issuers.
- Wider Acceptability: Wallet payments through UPI are widely accepted, irrespective of the wallet used by the customer.
- Improved Success Rates: Wallets enhance UPI’s payment success rates by reducing errors related to incorrect UPI PINs and insufficient funds.
Conclusion
The introduction of credit cards and wallets on UPI signifies a significant leap in India’s progression toward a cashless economy. Viyonapay is thrilled to champion this acceleration toward a truly digital and financially inclusive future by harnessing the power of UPI to enhance the payment experience. Merchants can now relax, as Viyonapay has already facilitated the integration of these payment methods.
