The Core Strategy: Linking Credit to UPI
The magic behind this travel-hacking tactic lies in a simple, powerful feature enabled by the National Payments Corporation of India (NPCI): linking your RuPay credit card to your UPI app. For years, UPI payments drew funds directly from your bank account,
earning you little to no rewards. Now, you can connect a RuPay credit card to popular apps like Google Pay, PhonePe, and Paytm. When you scan a merchant QR code, you can choose to pay using your credit card instead of your savings account. This single change means every eligible UPI transaction—from your morning coffee to your monthly utility bills—can start earning you credit card reward points. It is important to note that this facility is only for payments to merchants; person-to-person transfers are not permitted.
Choosing the Right Card for Travel Rewards
Not all credit cards are created equal, and the key is to pick one that specializes in travel benefits. There are two main types to consider. First, co-branded airline credit cards, such as those from IndiGo, Vistara, or Air India, are offered in partnership with banks like HDFC, Axis Bank, and SBI. These cards allow you to earn airline-specific miles or points (like IndiGo 6E Rewards or Vistara's Club Vistara points) directly from your spending. The second type is a general travel credit card. Cards like the Scapia Federal RuPay Credit Card or Axis Bank ATLAS offer their own reward points (e.g., Scapia Coins, EDGE Miles) that can be redeemed for flights and hotels on their dedicated travel portals or, in some cases, transferred to various airline loyalty programs. The best choice depends on whether you are loyal to one airline or prefer the flexibility of a broader rewards program.
Maximising Your Earnings on Daily Spends
Once you have the right card linked to your UPI app, the goal is to channel as much of your daily spending through it as possible. Think beyond just big-ticket purchases. Your daily commute, grocery shopping, dining out, and online orders can all add up. Some cards, like the Tata Neu Infinity HDFC Bank Credit Card, offer accelerated rewards when you use their own UPI interface (Tata Neu UPI), giving you a higher return rate of up to 1.5% in NeuCoins. It's crucial, however, to be aware of the terms. Many cards have monthly caps on the number of points you can earn from UPI spending. Furthermore, some banks offer lower reward rates on transactions below a certain amount (like ₹2,000) due to interchange fee structures, so it's wise to read your card's specific rules.
From Points to Plane Tickets: The Redemption Process
Accumulating points is only half the journey; knowing how to redeem them effectively is what truly unlocks their value. There are generally two paths for redemption. The most straightforward method is using your bank’s dedicated travel portal, such as HDFC's SmartBuy or Axis Bank's TravelEDGE. Here, you can book flights directly and pay for them using your accumulated points, which have a fixed monetary value. The second, often more valuable method, is transferring your bank points to an airline's frequent flyer program. For example, you could transfer Axis EDGE Rewards to a partner like Singapore Airlines KrisFlyer. This can provide a much higher value per point, especially for business class bookings, though it requires more research into seat availability and transfer ratios. Co-branded cardholders have it simpler, as their points are directly credited to the airline's loyalty program, ready to be used for booking award flights.
Watch for Special Offers and Vouchers
Beyond earning points, keep an eye out for direct discounts offered by airlines and travel portals for UPI payments. Companies like Air India, Yatra, and Cleartrip frequently run promotions where using a specific promo code and paying via UPI can give you an instant discount of up to ₹2,000 on your booking. These offers can sometimes be stacked with your credit card points, providing a double benefit. Additionally, some UPI apps like CRED and Paytm have their own rewards ecosystems. CRED allows users to redeem their 'CRED coins' for flight vouchers, while Paytm often provides exclusive cashback and discounts when booking flights within its app and paying via Paytm UPI. Combining these platform-specific offers with your credit card's rewards can significantly accelerate your path to a free or heavily discounted flight.
