Credit Card Spending via UPI Hits New Milestone
The Unified Payments Interface (UPI), a flagship of India's Digital Public Infrastructure that has garnered international attention, has achieved a significant milestone. Dilip Asbe, Managing Director and CEO of the National Payments Corporation of India (NPCI), announced that credit card spending through UPI has reached an impressive Rs 10,000 crore per month.
As be further revealed that credit lines on UPI accounts now stand between Rs 100 crore and Rs 200 crore, with the remainder coming from the RuPay credit card on UPI facility. He highlighted that ICICI Bank is among the leading institutions offering credit through UPI, with five to six other banks also participating in this service.
The 'credit line on UPI' feature, introduced by NPCI last year, facilitates low-ticket, high-volume retail loans for both individuals and businesses. Major banks including Axis Bank, HDFC Bank, ICICI Bank, Indian Bank, Punjab National Bank (PNB), and State Bank of India (SBI) have integrated this feature into their offerings.
Digital platforms such as BHIM, Google Pay, Paytm, PayZapp, Navi, and Tata Neu are also supporting this product. RuPay Credit Cards on UPI provide a seamless, digitally-enabled credit card experience, with 16 banks currently facilitating this service.
In July, UPI-based transactions surged to Rs 20.64 lakh crore, up from Rs 20.07 lakh crore the previous month, marking a 35 percent year-on-year increase. The total number of UPI transactions rose nearly 4 percent month-on-month, reaching 14.44 billion in July compared to 13.89 billion in June.
The average daily transaction volume for UPI stood at 466 million in July, an increase from 463 million in June, with the average daily transaction amount at Rs 66,590 crore. UPI continues to grow rapidly, adding around 60 lakh new users each month, driven by the integration of RuPay credit cards and its expansion into international markets.
