POINTS OF CONCERN

➘ Credit cards are short-term unsecured loans that need to be handled carefully

➘ UPI payments are free and UPI-linked card payments will benefit consumers and merchants. This move will impact the revenue structures of card issuers and how this pans out needs to be explored

➘ Easy payment over UPI may lead to irresponsible card usage by consumers

➘ All UPI transactions require a four or six-digit PIN, whereas credit cards require a PIN for offline POS and an OTP for online purchases. How the UPIlinked card payments will address security could pose challenges

➘ This could translate into a completely different no-cost card transaction mechanism