Popular UPI payments app Google Pay has partnered with Axis Bank to launch a co-branded credit card on the RuPay network.
This credit card can be linked directly to a user’s UPI account, allowing customers to make merchant payments easily through UPI.
What makes this card different is its instant cashback or rewards system. Unlike traditional credit cards, where rewards are usually credited at the end of the monthly billing cycle, this card gives rewards immediately after each transaction.
“We’ve reinvented the way you use rewards. You earn instant rewards on every transaction and can use them immediately on your next transaction,” said Sharath Bulusu, Senior Director and Product Manager at Google.
Growing Popularity of RuPay-UPI Credit Cards
The RuPay-UPI credit card model is becoming popular because it combines the simplicity and wide acceptance of UPI with the credit facility and rewards of a regular credit card.
Currently, Visa and Mastercard credit cards cannot be linked to UPI, while both RuPay and UPI are operated by the National Payments Corporation of India (NPCI).
According to Bulusu, UPI has made this innovation possible for Google Pay, allowing users to redeem rewards instantly on their next payment, improving the overall payment experience.
Fierce Competition Among UPI Apps
The competition in this space is strong. PhonePe, India’s largest UPI platform, launched its RuPay credit card in June with HDFC Bank. A month later, it partnered with SBI Cards to offer credit cards on both Visa and RuPay networks.
Paytm, which focused on revenue generation early, launched its first Paytm–Citibank co-branded credit card in 2019, followed by a partnership with HDFC Bank in 2021. It later added SBI as another banking partner.
Other major UPI platforms such as CRED and super.money also offer co-branded credit cards that can be linked to UPI.
Bulusu said Google Pay did not want to enter the market too early or act like a direct competitor. He explained that different companies have different goals—some focus on user growth, others on revenue.
He also highlighted that only one in five Indians currently has access to credit, and solving this problem presents a huge market opportunity.
Flexible Payment Options for Users
Another key feature of the Google Pay credit card is its flexible repayment options. Users can choose to pay their monthly credit card bills through EMIs spread over 6 or 9 months.
“We found that flexibility and simplicity in payments are very important for users, but difficult to implement, and we wanted to solve this before launching the card,” Bulusu said.
Most payment and consumer apps offer 5–10% cashback or reward points on payments made through their platforms, while partner apps and websites usually provide 3–5% cashback.
Credit cards also offer 1–1.5% cashback on other payments, including Scan & Pay UPI transactions.
Google Pay already offers the Ace credit card with Axis Bank on the Visa network, but it is not a fully co-branded card due to RBI regulations.
