UPI has changed how India pays. But until recently, UPI meant only bank account payments. That has now changed. Credit cards can be used on UPI, and this shift is reshaping everyday spending. Users no longer need to choose between UPI convenience and credit card benefits. YES Bank is part of this transition through its RuPay credit card offerings, which support UPI Scan & Pay across India.
The Rise of Credit Cards on UPI
UPI payments dominate small and medium transactions. From ₹50 tea payments to ₹2,000 fuel bills, UPI handles it all. Traditionally, credit cards were limited to POS machines or online checkouts. This restricted their use in daily offline payments. RuPay changed this by enabling credit cards on UPI. YES Bank, by issuing RuPay credit cards, allows users to combine:
- QR-based payments
- Credit limits
- Cashback benefits
All in one flow.
How UPI Scan & Pay Works with YES Bank Credit Cards
The payment journey is intentionally simple. A user links a YES Bank RuPay credit card to a UPI-enabled app. Once linked, the card appears as a payment option.
At checkout:
- The user scans a merchant UPI QR code
- Selects the credit card
- Confirms the payment
The merchant receives the payment like any other UPI transaction. No need of card machine.
This works across:
- Kirana stores
- Fuel pumps
- Food outlets
- Local service providers
Acceptance depends on UPI, not on card infrastructure.
Why YES Bank Cards Are Practical for UPI Usage
UPI credit card payments are most valuable when the card is built for routine usage.
YES Bank’s RuPay credit card, when accessed through Kiwi, focuses on:
- Low-cost ownership
- Cashback instead of points
- High-frequency transactions
This makes it more suitable for daily spending compared to premium reward cards designed for travel or luxury categories.
Feature Breakdown: What Users Actually Get
The YES Bank RuPay credit card available via Kiwi offers benefits aligned with real-world usage.
Verified features include:
- ₹0 joining fee
- ₹0 annual fee
- 1.5% cashback on UPI Scan & Pay transactions
- 0.5% cashback on online payments
- 1% fuel surcharge waiver on eligible fuel spends
There are no complicated tiers. There are no hidden milestone conditions. This predictability is important for users who rely on UPI daily.
Understanding Charges and Cost Structure
A key concern with credit cards is long-term cost.
This card addresses that concern directly.
- No joining fee
- No renewal or annual fee
- No additional charge for UPI transactions
The only applicable cost is standard credit card interest, which applies only if the user does not pay the bill on time.
Fuel surcharge waivers are applied as per issuer rules and transaction limits. For disciplined users, the effective cost of ownership remains zero.
Why Cashback Makes Sense for UPI Payments
UPI spending patterns differ from card-heavy categories like travel or electronics.
UPI transactions are:
- Smaller in value
- Repetitive
- Spread across the month
Reward points on such spends often accumulate slowly and feel abstract. Redemption can also involve conditions and conversions.
Cashback works better because:
- The value is immediate
- There is no conversion math
- The benefit feels tangible
This cashback-first approach makes YES Bank RuPay cards more relevant for UPI-led spending.
Credit Without Changing Habits
One of the biggest advantages of UPI credit cards is behavioural. Users do not need to change how they pay. They already scan QR codes.
The only change is what happens in the background:
- Payment goes to a credit card
- Users get an interest-free period
- Cashback is earned on routine spends
This makes adoption easier compared to traditional credit card usage.
Who Will Benefit Most from This Card
This card is well-suited for users who:
- Use UPI multiple times a day
- Want credit flexibility without premium fees
- Prefer cashback over complex reward systems
- Want a lifetime free card for everyday expenses
It is less suitable for users who prioritise travel perks or luxury benefits.
Final Assessment
UPI Scan & Pay with credit cards is no longer experimental. It is already shaping everyday payments in India.
YES Bank’s RuPay credit card fits naturally into this ecosystem. Its zero-fee structure, cashback-based rewards, and wide UPI acceptance make it practical rather than aspirational.
When accessed through a UPI-focused platform like Kiwi, the card becomes easier to use for daily spending instead of being limited to occasional card swipes.
For users who want credit benefits without changing how they pay, this is a sensible YES Bank credit card option in 2026.
FAQs
1. Do YES Bank credit cards support UPI Scan & Pay?
Yes. YES Bank issues RuPay credit cards, and RuPay is currently the only network supported for credit card payments on UPI.
2. Is there any extra fee for using a credit card on UPI?
No. UPI transactions made via credit card do not attract extra charges. Interest applies only if the monthly bill is unpaid.
3. Is the YES Bank RuPay credit card via Kiwi lifetime free?
Yes. The card discussed here has ₹0 joining fee and ₹0 annual fee, with no spending conditions.
4. Does cashback apply to all UPI payments?
Cashback applies to eligible UPI Scan & Pay transactions as per current terms, offering 1.5% cashback.
5. Where can UPI credit card payments be used?
They can be used at any merchant that accepts UPI QR payments, including local shops, fuel stations, restaurants, and service providers.
