Another big change has been seen in the field of digital payments. Tech giant Google and Axis Bank, one of the country’s leading private banks, have jointly launched UPI based digital credit card. The aim of this new initiative is to provide users with easy, fast and secure credit payment experience. It is believed that this step will completely bridge the gap between credit cards and UPI in India.
Till now UPI was mainly used for direct payment from bank account, but through this new digital credit card, users will be able to make payment on credit through UPI. That means there will be no need to keep the physical card in the pocket.
What is UPI Powered Digital Credit Card?
This will be a virtual credit card, which users will be able to use on their smartphones. This card issued by Axis Bank through Google Pay platform will be connected to the UPI network. While making the payment the user just has to choose the UPI option and the amount will be deducted from the credit card and not directly from the bank account.
This facility will provide special benefit to those people who used to avoid using credit cards for small transactions or who do not always have the card available.
What benefits will the users get?
The biggest advantage of this digital credit card is convenience and flexibility. Users will be able to pay on credit through UPI for services like grocery stores, online shopping, food delivery and travel booking.
Apart from this, there is also a possibility of getting reward points, cashback and offers from Axis Bank, as is available with traditional credit cards. Paying bills on time can also improve the user’s credit score.
Small businessmen will also benefit
Not only customers but also small shopkeepers and traders will benefit from this new system. Since UPI is already widely accepted in India, merchants will not need a separate card machine or infrastructure. This will further promote digital payments.
Emphasis also on security and control
Google and Axis Bank have described security as an important part of this system. Users will get features like real-time transaction alerts, limit control and instant blocking of cards. This will also reduce the possibility of fraud.
Next phase of digital credit
Experts believe that this partnership can give a new direction to the digital credit system in India. In the times to come, this combination of UPI and credit cards can completely change the way common people spend and pay.
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