As someone who frequently relied on using my credit card to pay rent for convenience and rewards, I’m curious — why have platforms like PhonePe, Paytm, and CRED stopped allowing rent payments via credit card in India?
I am someone who frequently used credit cards to pay rent for rewards and better cash flow management, I was surprised when platforms like PhonePe, Paytm, and CRED stopped offering this facility. This change primarily stems from regulatory requirements imposed by the Reserve Bank of India (RBI).
Regulatory Compliance:
The RBI now mandates that all merchants receiving payments through payment aggregators must complete full KYC (Know Your Customer) verification.
Since most landlords are individuals and not officially registered as merchants, platforms cannot process credit card payments to them without breaching these rules. This step is aimed at improving transparency, reducing fraud, and tracking large transactions.
Impact on Users:
For users like me, this means credit cards can no longer be used for rent payments on these apps. While this reduces convenience and the opportunity to earn rewards, it ensures safer and more compliant transactions between tenants and landlords.
Alternative Payment Methods:
Even though credit card payments are no longer available, tenants can still pay rent using:
• UPI – Fast and secure bank-to-bank transfers.
• NEFT/RTGS/IMPS – Traditional bank transfer methods.
• Standing Instructions – Auto-debit from a bank account for recurring payments.
• Cheque Payments – Direct cheque to the landlord.
Conclusion:
While the change may feel inconvenient, it aligns with regulatory guidelines and ensures safer transactions.
For more details, you can read the official article on the Economic Times website.