The Core Strategy: Credit on UPI
For years, UPI payments were a direct debit from your bank account, offering convenience but zero rewards. The game changed when the Reserve Bank of India allowed RuPay credit cards to be linked to UPI apps. This means you can now scan a merchant's QR
code and choose to pay using your credit card's credit line instead of your savings account. The benefit is simple yet powerful: every transaction, from your morning coffee to your grocery run, can now earn you credit card reward points. While standard Visa and Mastercard credit cards cannot be used for this yet, the RuPay network has opened the door to making every small payment a step toward a larger reward.
Choose Your Weapon: Travel Co-Branded Cards
Not all reward points are created equal, especially if your goal is free flights. To accelerate your earnings, the key is to choose a RuPay credit card that is either co-branded with an airline or offers a strong travel rewards program. For example, cards like the Scapia Federal Bank RuPay Credit Card are built specifically for travel rewards, allowing you to earn points that convert into value for flights and hotels. Similarly, some cards from major banks like HSBC have RuPay variants that allow you to convert your reward points into air miles with multiple airline partners, including Singapore Airlines and British Airways. The goal is to find a card where the rewards you earn from daily UPI spends can be directly channeled into a frequent flyer program or a travel portal.
How to Link Your Card and Get Started
The setup process is surprisingly simple. First, ensure you have a RuPay credit card from a bank that supports this feature. Then, open your preferred UPI app, such as Google Pay, PhonePe, or Paytm. Navigate to the payment settings or 'Add Account' section and look for an option like “Add RuPay Credit Card”. From there, you'll select your card's issuing bank, enter the last few digits of your card and expiry date, and verify with an OTP sent to your registered mobile number. Finally, you will set a UPI PIN for your credit card, just as you have one for your bank account. Once linked, you will see your credit card as a payment option whenever you scan a merchant QR code.
Maximise Your Daily Spends
The beauty of this system lies in aggregation. A single ₹50 purchase may not seem like much, but these transactions add up. Think about your monthly budget: groceries, dining out, cab rides, online shopping, and bill payments. By routing all these eligible merchant payments through your UPI-linked credit card, you could be accumulating points on tens of thousands of rupees every month. For instance, a card that offers 4 points per ₹200 spent could yield significant rewards over a year. Some cards, like the Tata Neu Infinity HDFC Bank card, offer a percentage back as 'NeuCoins' on UPI spends, which can be redeemed for flights on Air India. The key is consistency—making the credit card your default payment method for all UPI transactions.
Read the Fine Print
Before you dive in, be aware of the limitations. Reward earnings on UPI spends can sometimes be capped monthly. For example, a card might limit the UPI-based rewards to 500 points per month. Additionally, certain transaction categories like rent payments, wallet loading, or peer-to-peer money transfers typically do not earn reward points. Also, remember that this is still a credit card. You must pay your bill in full and on time each month to avoid interest charges, which would quickly negate the value of any rewards earned. Finally, check the reward redemption options. Ensure the points can be easily transferred to your preferred airline or used on a travel portal at a favourable conversion rate.
