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NPCI partners with payment aggregators for merchant transactions

March 30, 2023

NPCI partners with payment aggregators for merchant transactions
After the Reserve Bank of India (RBI) allowed linking RuPay credit cards to the Unified Payment Interface (UPI) last year, the National Payments Corporation of India (NPCI), which operates retail payments and settlement systems in the country, has joined hands with various payment aggregators to enable merchant transactions through RuPay credit cards on UPI. 

“NPCI has enabled key aggregators like BharatPe, Cashfree Payments, Google Pay, Razorpay, Paytm, PayU and Pine Labs to enable merchant transactions through RuPay credit cards on UPI in the Indian market,” NPCI said in a statement on Wednesday. 
 
Earlier, UPI customers were able to make transactions only through their bank accounts, overdraft accounts, and prepaid accounts. NPCI said the linkage will ensure that customers no longer have to carry their credit cards with them for payments.
 
“After the RBI’s decision to start linking RuPay credit cards to UPI, we immediately started enabling leading payment aggregators to boost merchant acceptance and customer awareness in a bid to attract early and widespread adoption. The support of all partners has been instrumental in helping us achieve this,” said Nalin Bansal, Chief of Corporate and Fintech Relationships and Key Initiatives, NPCI.
 
Bansal said NPCI will aim to explore more relevant avenues to promote the adoption of digital payments via credit cards on UPI. UPI has attracted over 250 million unique users and five crore merchants over the last few years. The credit card-UPI linkage will benefit merchants, particularly those in semi-urban areas where card point-of-sale (PoS) terminals are not widely available, said NPCI. As per the RBI Payments Vision for 2025, credit-based payment transactions are likely to increase by 16 per cent year-on-year for the next four years.
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