Guide

Best Credit Card for UPI Payments in India (June 2026)

Last updated June 4, 2026 · By Ash K · 7 min read
UPIUPI Payments

Paying your Swiggy order on GPay with your Axis ACE card? You earned 0 rewards. Here's what actually works.

Last updated June 4, 2026 · By Ash K · 7 min read

The single most important fact on this page

Visa and Mastercard credit cards earn zero rewards on UPI transactions. This applies to every card from HDFC, Axis, SBI, ICICI, Kotak, and every other Indian bank. The only credit cards that earn rewards via UPI are RuPay credit cards.

Source: RBI's zero MDR policy on UPI (2020), confirmed by NPCI circular. Last verified June 2026.

Why Visa/Mastercard credit cards earn nothing on UPI

Every time you swipe a credit card at a shop, the merchant pays an MDR (Merchant Discount Rate) of typically 1.5 to 2% to the bank. A slice of that MDR funds your reward points.

In January 2020, RBI mandated zero MDR on all UPI transactions. Merchants pay nothing when you pay via UPI. Without MDR income, banks have no budget to fund rewards, so they simply don't give any.

You tap GPay
linked to Axis ACE
UPI processes
Zero MDR
Bank earns
₹0 from merchant
Your reward
₹0 on this txn
RuPay

What actually earns rewards on UPI: RuPay credit cards

NPCI (which runs both UPI and RuPay) built a separate incentive structure for RuPay credit cards on UPI. When you pay via UPI with a RuPay credit card, the transaction goes through a different processing rail, which can carry rewards.

The catch: as of June 2026, most RuPay credit cards on UPI require you to use the issuing bank's own UPI app. You can't link your HDFC Millennia RuPay to Google Pay and expect rewards. You need to use HDFC's app.

Best for UPI
HDFC Millennia RuPay
HDFC Bank
₹1,000/yr
Waived on ₹1L annual spend
UPI reward rate: 5% cashback on UPI (partner merchants)
Direct card rate: 5% on partner merchants (direct card)
Best UPI reward rate but requires HDFC app setup and specific merchant categories apply.
Full review
IDFC FIRST WOW RuPay
IDFC FIRST Bank
Lifetime free (against FD)
N/A
UPI reward rate: Reward points on UPI transactions
Direct card rate: Points on all spends
Zero forex markup. Excellent for UPI users who also travel. FD-backed, so very easy to get.
Full review
SBI SimplySAVE RuPay
SBI Cards
₹499/yr
Waived on ₹1L annual spend
UPI reward rate: Limited rewards on UPI transactions
Direct card rate: 10X on dining, movies, grocery
The UPI reward rate is modest but SBI RuPay integration is seamless via BHIM SBI Pay.
Full review

How to actually pay Swiggy, Zomato, and Blinkit to earn rewards

GPay

The way most people pay online is: open GPay or PhonePe, scan, or use UPI autopay. This kills all rewards on non-RuPay cards.

The right method is to add your credit card directly inside the merchant app and pay through that. One extra step, full rewards.

MerchantPay via GPay/PhonePePay directly in appBest card for direct pay
Swiggy0%5% (Axis ACE partner)Axis ACE
Zomato0%5% (Axis ACE partner)Axis ACE
Blinkit0%5% (Axis ACE partner)Axis ACE
Amazon0%5% (Prime, Amazon Pay ICICI)Amazon Pay ICICI
Bigbasket0%1-2% variesHDFC Millennia

When paying via UPI (with a credit card) actually makes sense

Even without rewards, using a credit card via UPI gives you the credit period benefit. If your billing cycle closes on the 1st and due date is the 21st, a UPI payment on the 2nd effectively gives you ~50 days of interest-free credit before you pay.

You have a RuPay credit card and use the bank's own UPI app
Good. You earn rewards AND get credit period.
You want to track all spend in one place (budget management)
Acceptable. Consolidates UPI payments to card statement, even if 0% rewards.
You want to earn 5% on Swiggy using GPay
Not possible. Switch to direct card payment in the Swiggy app.
You want to hit the ₹1L spend threshold for card fee waiver
Valid. Even 0%-reward UPI spends count toward spend-based fee waivers on most cards.

The RuPay credit card landscape in 2026

NPCI has been aggressively pushing RuPay credit cards on UPI since 2023. In 2026, most major banks offer at least one RuPay variant of their popular card, though these are often less prominent than the Visa/Mastercard versions.

The friction remains: you must use the issuing bank's UPI app, not Google Pay or PhonePe. NPCI has announced interoperability plans but as of June 2026, implementation is partial.

BankRuPay Credit CardUPI App RequiredRewards on UPI
HDFC BankMillennia RuPayHDFC Bank appYes, 5% partner categories
IDFC FIRST BankWOW RuPayIDFC FIRST PayYes, reward points
SBISimplySAVE RuPayBHIM SBI PayYes, limited categories
Axis BankAxis RuPay (limited rollout)Axis MobilePartial rollout June 2026

What to do right now

  1. Check which cards you already own. Any non-RuPay card earns 0 rewards on UPI.
  2. For Swiggy, Zomato, Blinkit: add your credit card directly in the app. Remove UPI as default payment.
  3. If UPI is your primary payment mode: consider IDFC FIRST WOW RuPay (FD-backed, easy to get, zero forex).
  4. Use our Smart Swipe tool to check the right payment method for every merchant category you spend on.
  5. Read our complete RuPay credit card guide for bank-by-bank setup instructions.

Related guides

Best credit card for electricity and utility bill paymentsAxis ACE credit card full review (5% on Swiggy, Zomato, Blinkit via direct pay)Why your credit card earns nothing on UPI: the MDR explainer

Frequently asked questions

Why don't Visa and Mastercard credit cards earn rewards on UPI payments?+

RBI mandated zero MDR (Merchant Discount Rate) on UPI transactions in 2020. Since card rewards are funded by MDR, Visa and Mastercard credit card issuers earn nothing on UPI transactions and therefore pass zero rewards to cardholders. Only RuPay credit cards on UPI have a separate reward mechanism.

Which credit cards actually earn rewards on UPI in 2026?+

Only RuPay credit cards linked to UPI-enabled banking apps earn rewards on UPI transactions. HDFC Millennia RuPay, IDFC FIRST WOW RuPay, and SBI SimplySAVE RuPay are current options. Visa and Mastercard credit cards earn zero rewards on UPI regardless of the card or bank.

If I pay at Swiggy using GPay with my Axis ACE card, do I earn 5%?+

No. When you use GPay (or PhonePe, Paytm) with a non-RuPay credit card, the transaction is processed as a UPI payment. Your Axis ACE earns 0% on UPI. To earn 5% on Swiggy with Axis ACE, you must add the card directly on Swiggy's payment screen and pay with the card itself.

Can I link my HDFC Millennia RuPay to Google Pay?+

RuPay credit cards on UPI currently require you to use the issuing bank's own UPI app. HDFC Millennia RuPay needs to be linked via HDFC Bank's app (HDFC PayZapp or similar), not Google Pay or PhonePe. This is a known friction point in the RuPay-UPI ecosystem.

What is the best way to pay at Zomato and earn maximum cashback?+

Add your credit card directly in the Zomato app under payment methods. Do not use GPay or PhonePe as the payment method. If you use Axis ACE directly, you earn 5% (Zomato is a partner). Using GPay in between drops your reward to 0%.

Does UPI credit card work for person-to-person (P2P) transfers?+

No. RBI does not permit credit cards to be used for P2P UPI transfers. You can only use a UPI-linked credit card for merchant payments (P2M). Sending money to a friend's UPI ID via a credit card is not allowed.

Is it worth getting a RuPay credit card just for UPI rewards?+

It depends on your UPI spend volume. If you spend ₹15,000 to ₹20,000/month via UPI on merchants, a RuPay card earning even 1% gives you ₹1,800 to ₹2,400/year in rewards. Weigh this against the annual fee and the friction of using a separate banking app for UPI.