NPCI set to disrupt India's credit card market with RuPay UPI integration, report
National Payments Corporation of India (NPCI) is set to revolutionise the credit card market by integrating RuPay credit cards with the Unified Payments Interface (UPI), according to a recent Bernstein report. This strategic move will enable consumers to use credit through universal QR code payments, significantly expanding credit access for millions and disrupting the traditional credit card ecosystem in India.
RuPay UPI Integration Drives Market Disruption
The Bernstein report published on November 18 highlights that NPCI, which has already transformed debit card payments through UPI, is now positioned to disrupt credit cards with its RuPay-initiated UPI integration. Consumers will soon be able to leverage credit lines via UPI QR codes accepted by over 50 million merchants nationwide, a scale unmatched by traditional card terminals.
RuPay's Market Share Soars on UPI Credit Card Transactions
Since NPCI granted RuPay exclusive rights to link credit cards with UPI in 2022, RuPay's market share in credit cards has surged. UPI-linked RuPay credit card transactions now represent nearly 40% of total credit card transaction volumes, up from 10% at the end of FY2024. By transaction value, their share rose from approximately 2% to 8%. Industry data from October 2025 shows RuPay commanding an 18% share of India’s credit card market, challenging Visa and Mastercard's dominance.
Fintech Platforms Poised for Major Gains
Key fintech players such as PhonePe, Paytm, and Google Pay stand to benefit as they control over 90% of consumer UPI transactions. These platforms have already evangelised digital payments and will further catalyse the adoption of credit on UPI. The lower merchant discount rate (MDR) for RuPay credit cards on UPI, which only charges merchants on transactions above ₹2,000, makes credit more attractive to small merchants and expands usage for low-value transactions typically under ₹1,000.
Banks and Consumer Brands Backing RuPay Credit on UPI
Major Indian banks, including HDFC Bank, SBI Cards, Axis Bank, and ICICI Bank, actively promote RuPay credit card variants with UPI integration. Consumer brands like PhonePe, Flipkart’s Super Money, and Tata Neu have launched co-branded credit card offerings, boosting market penetration and consumer choice.
UPI's Massive Merchant Network Drives Credit Expansion
UPI currently processes over 90% of retail digital payments by volume, with more than 50 million merchants accepting QR-based payments, vastly outnumbering the fewer than 10 million merchants with traditional card terminals. This extensive network enables RuPay credit cards on UPI to reach a far wider audience, disrupting conventional credit card usage and accelerating digital credit penetration in India.