Quick answer
More Indian shoppers can now pay with credit through familiar routes: RuPay credit cards and bank credit lines linked to UPI, pay-later services and card EMI. For a store, these can make larger purchases easier, but which options appear and what they cost depend on your payment gateway, so check its current methods and fees before promoting them.
Credit is becoming part of everyday payments in India. Shoppers can now link RuPay credit cards to UPI, some banks offer pre-approved credit lines that can be used through UPI, pay-later services let people pay in a few weeks or instalments, and card EMI splits bigger purchases into monthly payments. For an online store, these options can make a ₹6,000 order feel as easy as a ₹600 one. Whether your shoppers see them, and what they cost you, depends on your payment gateway, so check before you promote anything.
This guide explains each option in plain language, what it means for a small or growing store, and how to decide which ones to offer.
What is credit on UPI?
UPI started as a way to move money directly from a bank account. Over the last few years the Reserve Bank of India has allowed more sources of funds to be linked to UPI, including RuPay credit cards and pre-sanctioned credit lines from banks. In practice, a shopper paying by UPI may now choose to pay from a credit card or a credit line instead of their savings account, in the same UPI app they already use.
For the shopper, the experience feels like any UPI payment. For the seller, it can mean that a customer who did not have enough in their account today can still buy. Which UPI apps and banks support these options, and how they appear at checkout, keeps changing, so treat this as a trend to watch rather than something to advertise on your banner.
Does it cost the seller more?
Possibly. Payments made using credit, including RuPay credit cards over UPI, can carry different merchant fees from regular UPI payments from a bank account. Fee rules are set by the networks, banks and your gateway, and they change. Look at your payment gateway's current pricing page or agreement, and check your settlement reports to see the fee on each payment method.
What are pay-later options?
Pay later, sometimes called buy now pay later, lets a shopper complete the purchase now and pay the provider later, either in one go after a short period or in a few instalments. The provider pays you (through your gateway) and takes on the job of collecting from the shopper.
Pay-later services appear at checkout through your payment gateway, if your gateway supports them and your business is eligible. Availability varies by provider, by the shopper's eligibility, and by order value. Regulators have tightened rules around digital lending in recent years, and some services have changed or paused, so check what your gateway currently offers.
How is card EMI different?
Card EMI lets a shopper with a credit card (and some debit cards) convert a purchase into monthly instalments with their bank. There are two common types:
- Standard EMI: the shopper pays interest to their bank. You get paid in full, minus your gateway's fee for that method.
- No-cost EMI: the interest is covered, usually by the seller offering an equivalent discount, so the shopper pays only the price. It costs you that discount.
EMI suits higher-value items: jewellery, electronics, furniture, appliances, courses and yearly memberships. Our guide to offering EMI and pay later at checkout covers the set-up in more detail.
How do these options compare?
| Option | Shopper experience | When it helps a store | What to check |
|---|---|---|---|
| UPI from bank account | Pay now from savings | Everyday orders | Gateway fee for UPI |
| Credit card or credit line on UPI | Pay by UPI, funded by credit | Shoppers short of cash today | Fee may differ from regular UPI |
| Pay later | Pay the provider later or in parts | Mid-value impulse and fashion orders | Availability, eligibility and fee |
| Card EMI | Monthly instalments with the bank | High-value products | Minimum amounts, bank list, no-cost EMI cost |
| Cash on delivery | Pay at the door | First orders from new buyers | COD fees, refused parcels |
What can you offer through UpMinutes today?
UpMinutes connects to your own Razorpay account. Shoppers can pay by UPI, credit and debit cards, net banking and wallets, and card EMI and pay-later options appear where your Razorpay account offers them. Money settles to your bank through Razorpay, which charges its own fees. UpMinutes charges no commission on sales. Whether a shopper can choose a credit card or credit line inside their UPI app is decided by their app and bank, not by your store. Our Razorpay setup guide shows how to enable methods in your gateway.
Will credit options increase your order values?
They can make larger purchases easier for some shoppers, but we will not promise a number, and you should be wary of anyone who does. The effect depends on your products, prices and customers. A ₹400 snack box is unlikely to need EMI; a ₹45,000 sofa may sell better with it. Watch your own data: the payment mix report in your dashboard shows which methods customers use, and you can compare average order values by method over a few months.
What about shoppers paying from abroad?
Credit on UPI, pay-later services and card EMI are largely domestic options tied to Indian banks and apps. Customers abroad usually pay with an international card, where your gateway supports it, and some Indian UPI features are now available to non-residents with certain accounts. On an UpMinutes store, visitors abroad see guide prices in up to 12 currencies, such as USD, GBP, AED and SGD, but every order is charged in rupees, so their card issuer converts the amount. Check whether international cards are enabled on your gateway and what they cost before you promote overseas sales.
Should you promote credit options on your store?
Gently, and accurately. Some good practice:
- Mention EMI on product pages of higher-priced items only if your gateway actually offers it for that amount.
- Do not promise "0% interest" unless you are running no-cost EMI and have set it up correctly.
- Avoid messages that push people to borrow, such as "Can't afford it? Buy now anyway."
- Keep cash on delivery and plain UPI visible for shoppers who prefer not to use credit.
Responsible messaging protects your brand and avoids disputes. If a shopper later struggles with repayments, that is between them and their lender, but a store that pushed credit hard will be remembered for it.
How does credit affect refunds?
Refunds generally go back to the original payment method through your gateway. For a card EMI purchase, the bank handles the reversal of instalments, and the shopper may see a delay. For pay-later, the provider adjusts the shopper's dues. Tell customers in your refund policy that timelines depend on their bank or provider, and keep records of each refund. See our post on refunds and credit notes.
What should you do now?
- Log in to your gateway and list which methods are switched on, and their fees.
- Check your payment mix report for the last three months.
- Decide which products, if any, deserve an EMI mention.
- Test checkout on your own phone with each method you promote.
- Review again in a few months; this area changes quickly.
For more on how Indian shoppers pay, read UPI, cards or cash on delivery and browse the trends and AI category.
Frequently asked questions
Can customers pay with a credit card through UPI on my store?
If their UPI app and bank support linking a RuPay credit card, they can choose it when paying by UPI. Your store does not control this, but the fee you pay on such payments may differ, so check your gateway.
Do I need a separate agreement to offer pay later?
Pay-later options usually come through your payment gateway, which may need to enable them for your account. Ask your gateway what is available for your business type.
Is no-cost EMI really free for the customer?
Usually the interest is offset by a discount the seller gives, so the customer pays about the product price. There may still be bank processing fees, which the bank should show the customer.
Should I offer EMI on low-priced products?
Generally no. Banks often set minimum amounts for EMI, and on small orders it adds complexity without helping the sale.
