When you look at the way India has embraced digital payments in the past few years, it feels like the entire country has gone through a huge shift in mindset. Earlier, we used to pull out debit or credit cards at stores, or sometimes just hand over cash. Today, most of us do not think twice before scanning a QR code, even if the amount is small. And in the middle of this massive transformation, something remarkable has happened. RuPay, which was once ignored in the credit card segment, has quietly captured 18 percent market share in October. For a homegrown network to achieve this, especially against Visa and Mastercard, says a lot about how fast India has changed.
Most of the credit for this sudden rise goes to one powerful innovation India created. A three-letter system that became part of our daily life: UPI. Without UPI, RuPay would still have been limited mostly to debit cards. But UPI opened a new gateway. It helped RuPay enter places where credit cards were never accepted before, and that changed everything.
Let’s go step by step into how RuPay reached here and what it means for the future of payments in India.
RuPay Was Built To Make India Independent In Digital Payments
RuPay was launched in 2012 by NPCI with a very simple yet important purpose. India should not rely only on foreign companies to process payments happening inside the country. Until then, whenever someone swiped a card, the system behind it mostly belonged to Visa or Mastercard. That also meant higher processing charges and dependency on networks located outside India.
UPI Entered And Changed The Game Entirely
UPI launched in 2016 and quickly became the backbone of India’s digital payment infrastructure. It solved problems we didn’t even know existed. UPI made payments:
. Instant
. Paperless
. No need to swipe cards
. No need to carry a wallet
. Accepted by the smallest vendors
It took hardly a year or two for people in India to become completely comfortable with UPI. Today, even small tea stalls and vegetable sellers prefer digital payments because it is faster than counting change. As users, we have become so habitual of scanning QR codes that inserting a card into a machine now feels old-fashioned.
But there was one limitation. UPI was mostly linked to savings accounts. That meant spending was limited to whatever balance existed in the account. Credit card users, who love reward points and the flexibility of paying later, still had to rely on swipes and PoS machines.
NPCI noticed this gap and came up with one brilliant move. If UPI is already a part of every transaction, then why not allow credit cards to use the same platform?
RuPay Credit Cards On UPI
When NPCI enabled RuPay credit cards on UPI apps like PhonePe, Google Pay, BHIM and Paytm, the entire credit card market changed. For the first time ever in India, a person could use credit benefits without physically carrying a card. Just scan and pay. Even tiny purchases became possible through a credit card. For example:
. A ten-rupee toffee
. A thirty-rupee milk packet
. A small auto rickshaw fare
. Quick grocery top-ups
Every payment that earlier needed cash or a debit account could now be done directly with credit. And on top of that, people could still earn:
. Cashback
. Reward points
. Offers
This one step removed the biggest limitation of credit cards. It made rewards accessible everywhere a QR code exists. That is exactly why RuPay suddenly became attractive. People started thinking that if one card can cover both UPI and credit expenses, why carry anything else?
Adoption Increased Faster Than Anyone Expected
What really helped RuPay’s rise is India’s comfort with UPI. We already trust this system for daily payments. So when credit got added, it was not even a big learning curve. RuPay credit cards became popular quickly in:
. Tier-2 cities
. Tier-3 cities
. Rural markets
. Small retail shops
Public sector banks also played a strong role by issuing RuPay cards aggressively. Users who earlier might have felt shy using a card now easily scan UPI QR codes at any shop. Merchants are also more relaxed accepting UPI payments because it involves lower charges than PoS machines.
Suddenly, RuPay moved from being just a debit card brand to a genuine competitor in the credit segment.
What Still Needs Improvement For RuPay
Every strong product has some challenges to overcome. RuPay credit cards still have to work on a few key areas:
. International usage is still limited compared to Visa and Mastercard
. Premium segment benefits need to grow more
. Lounge access and travel rewards are fewer
. Many people do not yet know that RuPay credit works on UPI
So while success is visible, the journey ahead will need more awareness campaigns, more global partnerships, and better card variants to attract frequent travelers and high-income users.
Future Growth Looks Promising
If we look at industry predictions, RuPay may reach 30 to 35 percent of India’s credit card market in the next few years. This is quite possible because:
. More banks are issuing RuPay credit cards
. UPI usage continues to grow rapidly
. Customers want rewards on small daily payments
. Fintech companies are designing better RuPay features
We may soon see:
. Instant EMI conversions on UPI credit spends
. Better rewards for online shopping
. Subscription and bill management tools
. More global acceptance partnerships
The direction is clear. RuPay will become stronger as UPI becomes stronger.
RuPay’s Success Shows India’s Growing Confidence
I personally see it’s rise as a sign that India has matured in technology and innovation. There was a time when we believed foreign payment systems were always better. But today, our own systems are leading the global conversation. UPI has become a case study in many countries. They want the same technology because it works perfectly at scale.
RuPay combining with UPI is a smart fusion of two Indian solutions that understand what the Indian market truly needs:
Convenience
Affordability
Inclusiveness
Credit access everywhere
With, digital empowerment has not just reached metro cities. It has reached every corner where a QR code can stand.
RuPay reaching 18 percent credit card market share is a success that nobody can ignore anymore. It signifies a shift in consumer behavior, a technological leap, and growing trust in Indian financial systems. The decision to allow RuPay credit cards on UPI was not a small update. It was a revolution that expanded where and how a credit card can be used.
From small shops to large markets, from cities to villages, RuPay has made digital credit spending possible for everyone. And this is only the beginning. With continuous innovation, RuPay could very soon become India’s first choice for credit payments. The race has changed, and now RuPay is running ahead with confidence.
A future where India depends more on its own payment infrastructure is now clearly visible. RuPay has taken a major step in that direction, and the next steps are going to be even bigger. To know more subscribe Jatininfo.in now.
