The Rise of RuPay Credit Cards

RuPay credit cards have been steadily gaining popularity in India. RuPay’s network has made transactions convenient, and cardholders enjoy a host of benefits. Let’s understand the benefits of using these credit cards and the reason for their steady rise.

What are RuPay Credit Cards?

They were launched by the National Payments Corporation of India (NPCI). They operate on the NPCI network, making transactions simple and secure. To add to the simplicity, RuPay also supports UPI. You can avail of UPI services on your RuPay card by linking it to your bank account. This is a revolutionary feature and one of the primary selling points of RuPay cards, which has led to their gaining ground in India.

The Benefits of RuPay Credit Cards

Like any other credit card, a RuPay card offers many benefits. However, unlike other credit cards, they offer much more value to the cardholder. Let’s look at some of the benefits you receive as a cardholder:

UPI Ecosystem

UPI needs no introduction. We use UPI payment methods in one way or another or through various UPI apps for convenient everyday transactions. Since its introduction in April 2016, digital transactions have become the norm. This has led to a massive UPI ecosystem capable of bearing these transactions. RuPay credit cards’ integration with UPI empowers cardholders to utilise this convenient ecosystem.

Cost-effectiveness

Another attractive feature of these credit cards is their affordability. Many cards are lifetime-free and do not entail annual fees. This makes it a viable option in a cost-sensitive, value-conscious country like ours.

Increasing Acceptance

RuPay has expanded its reach, not just in India but also globally. Its growing network enables cardholders to transact with various merchants and platforms.

Specially Designed for India

The demand for these credit cards in Tier-2, 3, and 4 Indian towns has surpassed VISA and Mastercard. They offer benefits tailored to the Indian consumer and rewards catering to domestic preferences, which helps those primarily making local transactions.

The Popularity of RuPay Credit Cards

Considering the benefits mentioned above, it is no surprise that RuPay cards are gaining the traction they are. Fundamentally, UPI integration is the primary attraction for RuPay. Additionally, since these cards come in virtual forms, they have made it easy for tech-savvy Indians to make convenient payments and reap the rewards that follow every transaction.

There has been a resurgence in people’s spending power. They are spending more on travel, dining, and shopping and using credit cards for these expenses. Additionally, the growing knowledge of credit scores and credit history has seen more Indians using credit cards for responsible spending. However, since the pandemic, Indians have become mindful and wise in their expenditures; there is a growing tendency to maximise rewards and cashback. This is where RuPay cards shine. They offer higher rewards, luring in more and more users.

The rising demand for RuPay cards has pushed banks to join the RuPay network. This works in their favour, as there are no quarterly fees for joining this network. Banks can also maintain their payment setup at a fraction of the cost of that offered by foreign networks.

In June 2023, the RBI allowed the distribution of prepaid Forex cards. This was aimed at helping Indian travellers spend less on overseas visits at international ATMs and online merchants. Besides acceptance in online and offline points of sale (PoS), certain RuPay credit card issuing banks offer lounge access and insurance coverage. These features are lucrative for Indian travellers, who are increasingly going abroad for business and family travel.

Conclusion

RuPay credit cards are revolutionary products that offer more bang for your buck. With the availability of UPI linking, myriad rewards and cashback, ease of foreign travel expenditure, and low operational costs for banks, their popularity is well-founded. RuPay’s partnerships with merchants, encompassing offers and cashback for consumers, have driven its value proposition in these challenging economic times.