Digital payments are the new component of modern transactions. The centre of this transformation is RuPay credit cards, combining the accessibility of credit with the flexibility of digital platforms. If you are wondering about whether you should use credit card benefits, payment channels like RuPay are defining the future of cashless payments in a way that feels familiar, secure, and sustainable.
In this regard, this blog takes a closer look at how they work, the benefits they offer, and the growing role they play in day-to-day transactions.
Overview of RuPay Credit Cards
In India, RuPay started as a domestic network to decrease the dependency on foreign players and lower the expenses. Over the years, its focus has been on providing debit and prepaid cards to individuals. But,now they also provide credit cards, thanks to the regulatory approval which has enabled the linking of credit cards with UPIsince 2022. By doing so, RuPay has gained an upper hand by allowing users to have a credit transaction using QR codes and mobile payment applications.
It also encouraged more people to apply for credit card products that could be integrated into the existing digital payment system that they were used to.
Market Share and Transaction Scope of RuPay
As of 2023, RuPay made up approximately 3% of credit card transactions. By 2024, it had reached almost 12% in share, and by early 2025, nearly 16% of all credit card transactions were handled by RuPay. A significant portion of this expansion is through credit card onUPI, whereby the individuals make payments through QR codes, yet the amount is charged against their credit limit.
Benefits of RuPay Credit Cards
Some of the popular benefits offered by banks on RuPay credit cards are as follows:
- Cashback everywhere: You can earn cashbackor reward points on both in-store, online, and contactless payments, including UPI and non-UPI. It usually excludes fuel, rent, and government spending, but it is easy and automatic with cashback on most everyday transactions.
- Access to lounges in airports and railway stations: The card provides free visits to domestic airport lounges twice a quarter, with meeting spend requirements and benefits of railway lounges.
- Tap-and-go payments: Contactless feature allows making payments within the ₹5000 limit without the need for the PIN.
You can get most of these benefits at leading Banks like AU Small Finance Bank’s RuPay credit cards.
Merchant and Ecosystem Impacts
RuPay credit cards are transforming the experience of merchants by reducing expenses and increasing accessibility. Some of the key impacts include:
- Reduced merchant discount rates (MDR): Benefits small businesses by allowing them to take credit without paying a lot of processing costs.
- Quick settlement: Ensures quicker receipt of funds, which results in a better day-to-day cash flow.
- UPI integration: Gives merchants the ability to accept credit without the use of card-swiping machines.
- The wider acceptance network: Moves credit use to non-metro into daily transactions.
Conclusion
The emergence of RuPay credit cards demonstrates how innovation that is specific to local needs can transform a whole payment system. What started as a move towards decreasing reliance on global networks has expanded into a trend that integrates low prices, being digital, and rewarding consumers. To the individuals, the card offers rewards on day-to-day transactions, and to merchants, the card can reduce system integration barriers. These are collectively leading to a future where digital credit is more than just available, but a part of daily transactions.
