I agree with your statement above. UPI is looking at also getting credit card accounts linked to the NPCI/UPI network in the future. NPCI itself is trying to push RuPay as an alternative to Visa/Mastercard for domestic card payments.
So, a subtle difference from a payment stack perspective is that the consumer protection offered by credit cards is not necessarily a payment stack functionality but a feature of the credit card (just as credit and loyalty points etc., are a function of the credit card).
It is just a slighly different design goal and honestly most users of UPI are okay with it because they favor the cash-replacement offered by UPI.
I will say this though -- the ease of use in UPI is so smooth that if users fail to double check the QR code they have scanned (actually the UPI virtual address) with the vendor and confirm that it is indeed their account (I do it every time), there is a possibility of hackers diverting the funds at the point-of-sale through the use of fake QR codes. This risk is similar to skimming devices installed on PoS machines/ATM machines to steal credit card data.
So, a subtle difference from a payment stack perspective is that the consumer protection offered by credit cards is not necessarily a payment stack functionality but a feature of the credit card (just as credit and loyalty points etc., are a function of the credit card).
It is just a slighly different design goal and honestly most users of UPI are okay with it because they favor the cash-replacement offered by UPI.
I will say this though -- the ease of use in UPI is so smooth that if users fail to double check the QR code they have scanned (actually the UPI virtual address) with the vendor and confirm that it is indeed their account (I do it every time), there is a possibility of hackers diverting the funds at the point-of-sale through the use of fake QR codes. This risk is similar to skimming devices installed on PoS machines/ATM machines to steal credit card data.