The New Age of UPI Payments
For years, UPI payments were a direct debit from your bank account. It was fast, simple, and convenient, but it didn't come with perks. That has changed. Now, you can link specific credit cards to your favourite UPI apps, transforming every QR code scan
into a reward-earning opportunity. This facility is currently exclusive to RuPay credit cards, which are offered by most major Indian banks. Instead of your savings account being debited, the payment is charged to your credit card, allowing you to earn points, enjoy an interest-free credit period, and manage your cash flow more effectively.
How to Link Your Card in 3 Easy Steps
Getting started is remarkably simple and takes just a couple of minutes. First, open your preferred UPI app, such as Google Pay, PhonePe, or Paytm. Next, navigate to your profile or payment settings and look for an option like 'Link RuPay Credit Card on UPI' or 'Add Credit Card'. Finally, select your bank from the list, choose your RuPay credit card, and authenticate it, usually via an OTP sent to your registered mobile number. You will then be prompted to set a UPI PIN for your credit card, which you will use to authorise future transactions.
Choosing the Right RuPay Credit Card
Not all RuPay credit cards are created equal when it comes to rewards. The best card for you depends entirely on your spending habits and redemption goals. Some cards, like the HDFC Bank Tata Neu series, offer rewards as NeuCoins, which are valuable for booking flights on partner airlines. Other cards might offer a flat cashback rate on all UPI spends. Co-branded airline cards are excellent if you are loyal to a specific carrier, as they often provide accelerated miles and other travel benefits. Before choosing, check the reward rate for UPI transactions, any monthly caps on earnings, and whether categories like fuel or rent are excluded from earning points.
From Daily Spends to Airline Seats
This is where your strategy pays off. Once you've accumulated a healthy balance of reward points, the next step is converting them into flights. This process typically follows one of two paths. The first is transferring your bank's reward points to an airline's frequent flyer program, such as Singapore Airlines' KrisFlyer or Vistara's Club Vistara. This method often provides the highest value per point, especially for business class bookings. The second path is to use your points directly on your bank's dedicated travel portal to book flights. While more straightforward, this might offer a lower redemption value. For example, if a point is worth ₹0.50 on the portal but can be transferred to an airline mile worth over ₹1, the transfer is the smarter choice.
A Realistic Path to Free Flights
While the headline promises 'free flights', it is crucial to have realistic expectations. Earning a flight ticket solely through UPI spends will take time and significant expenditure. Think of this strategy as a powerful accelerator for your travel goals. A typical reward rate on UPI spends is around 1-1.5%. If you spend ₹50,000 a month via UPI, you might earn points worth ₹500 to ₹750. Over a year, that accumulates to ₹6,000-₹9,000, which is enough for a domestic flight or can significantly subsidise an international one. The key is consistency and ensuring all your eligible daily expenses are channelled through this method.
Important Things to Keep in Mind
While powerful, this system has a few rules. Firstly, credit card payments on UPI are generally restricted to merchant transactions (P2M); you cannot use them to send money to individuals (P2P). Secondly, while UPI itself is free for users, some merchants might levy a small convenience fee for credit card-based UPI payments. Finally, and most importantly, remember that this is still a credit card. All your spends are added to your monthly bill. To avoid high interest charges, it is essential to pay your entire credit card bill in full and on time. This strategy is about maximising rewards, not accumulating debt.
