What are the pros and cons of linking your credit card with UPI?

livemint.com:

Unified Payments Interface (UPI) serves as a real-time payment system facilitating seamless fund transfers between two bank accounts through a mobile app. In India, UPI has gained immense popularity, evident from the staggering figure of over seven billion transactions processed in September 2023. A multitude of UPI apps are accessible in India, such as Paytm, PhonePe, MobiKwik, iMobile, BHIM app, Airtel Money, Axis Pay, Baroda MPay, Pockets-ICICI Bank, SBI Pay, and Yes Pay.

Additionally, several banks offer their own UPI apps. To utilize UPI, individuals must download a UPI app and associate it with their bank account. Once linked, users can effortlessly send and receive money using their UPI ID or QR code.

For users, UPI stands out for its convenience and security, providing an affordable payment method, with the majority of transactions incurring no charges. Initially, fund transfers to your UPI were limited to a debit card or a savings bank account. However, the Reserve Bank of India (RBI) has recently authorized the linking of credit cards with UPI.

This development comes with its advantages and disadvantages. The benefits of linking your credit card(s) with the UPI include: Enhanced convenience: Integrating a credit card with UPI enhances the convenience of utilizing credit cards for smaller transactions. Presently, credit cards are restricted to transactions at establishments accepting them.