Major fintech apps such as PhonePe, Paytm, Cred, and Amazon Pay have stopped offering the option to pay rent with credit cards.
This feature was popular among tenants because it provided flexibility in managing rent payments.
The change comes after the Reserve Bank of India (RBI) issued new payment aggregator guidelines on 15 September.
Why has rent payment through credit cards been stopped?
The new RBI rules specify that payment aggregators (PAs) can only process transactions for merchants with whom they have direct agreements.
Since landlords are not registered merchants, fintech platforms cannot transfer credit card payments to their accounts.
The RBI has also raised concerns about KYC compliance. Until now, such transactions often skipped full verification.
Many people misused the facility by transferring money as “rent” to relatives and then using it for other purposes.
How did rent payments through credit cards work?
Earlier, tenants could easily pay rent using credit cards on apps like Cred, PhonePe, and Paytm.
The app deducted the rent amount from the card and transferred it directly to the landlord’s bank account.
This became popular as tenants earned reward points and cashback, got an interest-free credit period, and managed monthly expenses more smoothly.
Were banks already restricting this facility?
Yes. Even before RBI’s new rules, banks had started limiting such transactions.
In June 2024, HDFC Bank introduced a 1% fee on credit card rent payments, capped at ₹3,000.
ICICI Bank and SBI Cards stopped giving reward points on these transactions.
SBI Cards reported in FY23 that rent payments made up only a mid-teens share of retail spending, averaging ₹20,000–₹21,000 per transaction.
Later, it raised fees from ₹99 to ₹199 and then to ₹200. SBI Cards also admitted that rent payments were growing slower compared to other retail spends.
Which platforms have stopped the service?
In March 2024, PhonePe, Paytm, Mobikwik, Freecharge, and Amazon Pay discontinued credit card rent payments.
After RBI’s new guidelines in September 2025, Cred and other platforms also removed the feature completely.
Who will be affected?
Tenants: They will no longer be able to pay rent using credit cards on fintech apps. This means losing out on reward points, cashback, and the benefit of interest-free credit periods.
Banks: Analysts expect fee income to fall, which could put pressure on earnings per share (EPS) of companies like SBI Cards.
Fintech companies: Rent payments were one of the fastest-growing categories for them. Losing this facility means they must look for new services and business models.
What options do tenants have now?
Tenants must now use other payment methods such as UPI, NEFT, RTGS, IMPS, cheques, or standing instructions through their banks.
These methods require direct payment, so tenants will no longer have the advantage of credit card rewards, cashback, or post-billing payment flexibility.
