Bengaluru: Fintech platform Razorpay on Monday announced an industry-first initiative to enable merchants to accept credit card transactions on the Unified Payments Interface (UPI), as the digital payments landscape experiences dazzling growth.
With RuPay credit cards enabled on UPI, Razorpay merchants can start accepting credit card payments on UPI, with minimal changes to their existing setup.
The company said the move is made possible in partnership with Axis Bank, which shares Razorpay’s goal of meeting merchants’ ever-changing needs and providing greater convenience.
This offering is in line with the latest innovation from National Payments Corporation of India (NPCI) and Reserve Bank of India (RBI) in the digital space, the company said. On October 4, the NPCI authorized the linking of RuPay credit cards with the BHIM UPI application.
“For this activation to have an impact, the preparation of any payment gateway infrastructure is essential. In this context, Razorpay has taken the first step towards democratizing credit card transactions on UPI for our merchants,” said Shashank. Kumar, MD and Co-founder, Razorpay.
About 250 million Indians use UPI for their daily transactions and almost 50 million users have one or more credit cards.
Customers of HDFC Bank, Punjab National Bank, Union Bank and Indian Bank will be the first to reap the benefits of this innovation, the company said.
“This will enable users to transact seamlessly with merchants across India on credit rails in line with the government’s vision to expand structured credit infrastructure in India,” said Nalin Bansal, Head of Enterprise and FinTech Relations and Key Initiatives, NPCI.
According to RBI data, the credit card industry in the country has grown steadily at the rate of 30% over the past three years.
“We believe this decision has the potential to change the way customers make payments over the next 2-3 years,” said Sanjeev Moghe, President and Head – Cards and Payments, Axis Bank.