Google Pay has launched a co-branded credit card with Axis Bank on the RuPay network, enabling users in India to make UPI-based merchant payments on credit. The card links directly to UPI accounts and allows instant reward usage, expanding credit access within everyday digital payments.
What changed in Google Pay UPI credit card access
Google Pay’s new offering allows users to earn and redeem rewards instantly on every transaction. Unlike standard credit cards, rewards do not wait for the billing cycle to close. Users can apply earned rewards to the very next payment.
The product uses RuPay’s compatibility with UPI. Visa and Mastercard credit cards cannot link to UPI. Both RuPay and UPI operate under the National Payments Corporation of India.
Key product features
- Instant rewards on every transaction
- Reward redemption on the next UPI payment
- Direct linkage to existing UPI accounts
- Acceptance at UPI-enabled merchant QR codes
How the RuPay UPI credit system works
RuPay-linked credit cards allow users to pay through UPI QR codes using credit instead of debit. Merchants do not need card terminals. As a result, credit acceptance expands across small and offline businesses.
The Google Pay UPI credit card follows common reward structures used by payment platforms.
- Higher cashback for payments within the Google Pay ecosystem
- Moderate rewards on partner platforms
- Base-level cashback on general UPI scan-and-pay transactions
Google Pay also offers the Ace credit card with Axis Bank on the Visa network. However, that product does not meet RBI criteria for a co-branded card in this category.
Impact on India’s UPI and consumer credit market
UPI platforms are moving deeper into co-branded credit products. PhonePe launched a RuPay credit card with HDFC Bank earlier this year. It later partnered with SBI Cards. Paytm entered the co-branded credit space in 2019 and added more banking partners over time. Cred and super.money also offer UPI-linked credit cards.
Industry executives estimate that only one in five Indians has access to formal credit. UPI-linked credit cards aim to widen access by combining daily digital payments with short-term credit usage.
Why platforms are pushing UPI-linked credit
- UPI already has wide merchant acceptance
- Credit cards raise transaction value and frequency
- Small payments reduce first-time credit risk
Google Pay executives said the company focused on repayment simplicity before launch. Users can split monthly bills into EMIs over six or nine months.
Positioning within Google Pay’s payments portfolio
The Google Pay UPI credit card adds another layer to the company’s India payments strategy. By combining UPI reach, RuPay infrastructure, and instant rewards, the product places credit inside routine digital transactions rather than treating it as a separate financial tool.
