UPI and RuPay Card: RuPay credit card magic continues to drive UPI payments, with domestic network share rising to 16% in two years..

India's domestic card network, RuPay, has benefited the most from the significant increase in credit card transactions via UPI. According to Bernstein data, UPI now accounts for nearly 40% of all credit card transactions (by number). This share has quadrupled from 10% at the end of FY24. Its share by value has also increased from 2% to 8%.

According to the Economic Times, at the end of 2022, the Reserve Bank of India (RBI) allowed only RuPay credit cards to be linked to the UPI platform. Since then, RuPay's credit card market share has grown from 3% two years ago to nearly 16%. By the end of September 2025, there were over 113.3 million active credit cards in India. According to the report, the rapid adoption has been driven by its reach to more merchants and a lower MDR (Merchant Discount Rate) structure for small merchants.

No charges for small merchants
Today, more than 50 million merchants use UPI for transactions. Meanwhile, the number of merchants with point-of-sale (POS) machines that accept all credit cards is less than 10 million. The MDR for transactions using RuPay credit cards on UPI applies only to large merchants. Small merchants are charged for transactions above ₹2,000. This is why even small shopkeepers are easily adopting it. Experts say that QR payments on UPI-linked credit lines are increasing access to credit.

How did it get promoted, what are the challenges?
According to a recent report by PwC India, the ability to link RuPay credit cards to UPI has revolutionized digital payments. The report states that users can now easily make QR-based transactions, benefit from rewards, and pay bills simultaneously. This innovation has boosted the adoption and use of credit cards.

According to a Bernstein report, as UPI expands credit access among small merchants, the number of credit card transactions could increase. However, most transactions under ₹2,000 are exempt from MDR charges, which could slow revenue growth for companies.

Disclaimer: This content has been sourced and edited from Navbharat Times. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.