UPI has completely changed the Indian Payment Infrastructure in the past few years. It makes it easy for millions of Indians to send money quickly. With the help of RuPay now UPI can also work with credit cards, making payments even more convenient. This feature is helping many industries, but quick commerce is a big beneficiary of it. The rate of growth of quick commerce is very fast after the pandemic and UPI credit cards played a significant role in it.
In this blog, we will discuss how UPI Credit Cards are helping quick commerce and changing the way people shop in India.
What is a UPI Credit Card?
First of all, let’s start with what is UPI Credit Card. A UPI Credit Card combines the benefits of UPI and credit cards. Earlier, UPI was linked to savings accounts only, so one could only spend what they had in their bank account. Now, with credit cards connected to UPI, you can pay with UPI using your credit card up to your credit limit. Making credit card payments with UPI makes it very easy to use.
The National Payments Corporation of India (NPCI) has a big role in it as it developed the system that allows RuPay credit cards to work with UPI. All UPI apps like PhonePe and Google Pay have this feature now to make payments much easier.
What is Quick Commerce (Q-Commerce)?
Quick commerce enables very fast delivery of goods usually within 10 to 30 minutes. In regular e- commerce, It takes a day or more for delivery. It’s very popular in metro cities where people need their items delivered very fast.
Some popular Q-Commerce platforms in India are:
All these platforms need fast and simple payments to keep customers happy, which is why UPI Credit Cards are perfect for them.
How UPI Credit Cards Help Quick Commerce
Trust for Payments
UPI is one of the most trusted payment sources of India while Credit Cards have been prone to fraud in the past. Many people who are new to digital payments are hesitant to use credit cards. Now the feature to use Credit Card via UPI is building trust for credit card payments for these new users. This is helping Quick Commerce as people can spend more money on Quick Commerce platforms.
Easy and Fast Payments
Q-commerce needs quick and smooth payments. UPI Credit Cards make this possible by:
– Allowing instant payments through UPI
– Using your credit limit for bigger purchases
For example, if you’re buying groceries on Blinkit, you can pay with a UPI Credit Card even if you don’t have enough money in your bank account. This makes the process hassle-free and keeps customers happy.
More Spending Power
With UPI Credit Cards, you can use your credit limit for small and everyday purchases. This helps:
– People managing monthly expenses
– Students or gig workers who prefer to pay later
This extra spending power helps quick commerce platforms attract more customers, especially during sales or festive seasons.
Rewards and Offers
Credit cards come with rewards like cashback and discounts. When combined with UPI, q-commerce platforms can provide extra benefits. For example:
– Instamart could offer cashback for payments made with UPI Credit Cards.
– Zepto could give reward points on grocery orders.
These rewards encourage customers to shop more often, helping the platform grow.
Making Digital Payments Easy for All
Quick commerce is growing in Tier-2 and Tier-3 cities as well. Many people in these areas are new to digital payments. UPI Credit Cards make it easy by:
– Using the same simple UPI interface
– Giving access to credit without extra steps
This helps more people try q-commerce, expanding its reach.
Reducing Checkout Problems
Many people leave their online shopping carts without buying because of payment issues. UPI Credit Cards solve this by:
– Ensuring payments go through instantly
– Letting customers pay even if their bank balance is low
This reduces incomplete orders and increases sales for platforms.
Easier Refunds
Cancellations and refunds are common in quick commerce. UPI Credit Cards make refunds faster by:
– Sending the refund directly to the credit card
– Reducing the time taken for manual processing
This builds customer trust and encourages them to use the platform again.
The Future of UPI Credit Cards in Quick Commerce
UPI Credit Cards have a bright future in India. Here’s what we can expect:
More Credit Cards on UPI
Currently, only RuPay credit cards work with UPI. Soon, cards from Visa and Mastercard will also join, making this feature even more popular.
Personalized Offers
Using artificial intelligence, platforms can offer:
– Rewards based on your shopping habits
– Credit limits that match your spending needs
Global Shopping
In the future, UPI Credit Cards might work with international platforms. This could allow Indians to shop on global sites using their UPI.
More Partnerships
Banks and platforms like Swiggy may create special co-branded UPI Credit Cards with exclusive benefits.
Conclusion
UPI Credit Cards are changing how payments work in India. They make payments quick, secure, and easy for customers and sellers. This is helping quick commerce platforms grow faster.
As more people start using UPI Credit Cards, they will become an important part of online shopping in India. For customers, they offer flexibility and rewards. For businesses, they bring more sales and faster payments.
The combination of UPI Credit Cards and quick commerce is the start of a new shopping experience in India. With these innovations, the future of payments and shopping looks exciting and promising.
If you also want to use UPI Credit Card for your daily expenses, you can use Kiwi UPI Credit Card.
