UPI Credit Line Explained: How it Works and Why it Challenges Credit Cards

• UPI credit line allows payments using pre-approved credit instead of bank balance, integrated directly into your existing UPI app.
• Users can choose between their bank account or the credit line for payments, maintaining the familiar UPI payment process.
• It expands UPI beyond just payments, enabling small borrowings, and offers wider acceptance than credit cards, especially at small vendors.
• Unlike credit cards, there's no physical card or separate management; everything is within the UPI app, simplifying the experience.
• While credit cards offer rewards and longer interest-free periods, UPI credit lines fill a gap for everyday small spends and offer easier access for some.

Why It Matters: UPI credit line offers a seamless, widely accepted credit option for everyday payments, complementing rather than replacing credit cards.