How RuPay-UPI Credit Cards Change Indian Spending

The Hidden Volume Pulse of RuPay-UPI

Look, the headlines tell you RuPay cards are growing. But the real story is what happens when you tap—the taps that move money, not just the cards themselves.

On UPI, RuPay-powered credit cards now account for a big share of the action: 38% of credit card transaction volume, even though they make up about 8% of total credit card spend. And UPI’s reach is massive—over 5 crore merchant acceptance points, while traditional POS devices sit at under 1 crore. This isn’t luck; it’s a network design advantage that pushes volume where it’s easiest to pay.

The Volume Advantage Under the Hood

So, why is RuPay riding this wave? Because UPI is everywhere. It’s simple, fast, and built into almost every phone and app you use. When RuPay cards are linked to UPI, almost any merchant can accept card payments without extra hardware, making every tap feel effortless for the customer. And because NPCI owns both the RuPay network and the UPI rails, there’s a seamless pathway from card to merchant to settlement. That streamlined flow helps turn card ownership into daily spending, not just occasional use.

We also shouldn’t forget the policy nudge. In June 2022, the RBI opened the door for RuPay credit cards on UPI, and smaller merchants got relief with a lower MDR structure. The result? More everyday Indians can pay with a RuPay card through UPI, especially in small shops and local markets where cash still reigns. And because global networks like Visa and Mastercard aren’t allowed to ride on UPI in the same way, RuPay gains a relatively clean field to grow.

The Gap That Matters

Here’s the thing: there’s a gap between who gets issued RuPay cards and how much they’re actually spent. A large chunk of new RuPay cards are added to existing accounts rather than new credit customers. In plain terms: many RuPay cards are “add-ons” to family wallets, not fresh lines of credit opened by first-time borrowers. That helps households build access, but it tug-points the growth of spend rather than the number of new borrowers. So the volume looks impressive, while the total spend lags behind.

This matters because it shapes risk, repayment behavior, and future pricing. If more people start relying on credit for everyday needs—and if acceptance keeps growing—lenders may recalibrate offers, limits, and incentives. For you, it could mean easier access to credit in more places, plus the comfort (or risk) of tapping more widely through UPI-linked RuPay cards.

The implication is clear: the way you pay today could redefine your credit future tomorrow. RuPay on UPI isn’t merely a feature; it’s a transformation in how we spend, borrow, and shop.