Popular UPI payments platform Google Pay has partnered with Axis Bank to roll out a new co-branded credit card on the RuPay network, marking a significant step in India’s digital payments evolution. The card is directly linked to users’ UPI accounts, enabling credit-based payments through familiar UPI workflows. This innovation allows consumers to make merchant payments on credit without switching platforms. A major attraction is instant cashback and rewards, which are credited immediately after each transaction. Unlike conventional credit cards, where benefits are delayed until the billing cycle ends, users can redeem earned rewards on their very next payment, enhancing everyday spending convenience.
UPI-Linked Credit ConvenienceThe biggest advantage of the Google Pay–Axis Bank RuPay credit card is its seamless integration with UPI. Users can scan and pay as usual, but transactions are settled using a credit line instead of a bank balance. This removes the friction of carrying physical cards while retaining credit flexibility. The feature is particularly useful for small, frequent payments at local merchants. By merging UPI’s wide acceptance with credit access, the card makes borrowing simpler and more accessible, especially for users who prefer digital-first financial tools and rely heavily on UPI for daily transactions.
Instant Cashback and Reward StructureUnlike traditional credit cards that offer credit rewards at the end of a billing cycle, this card offers real-time benefits. Cashback or reward points are credited instantly after every transaction. Payments made on Google Pay’s own platform typically earn higher cashback, while partner apps and websites offer moderate rewards. Regular UPI scan-and-pay transactions provide modest but consistent returns. According to Google Pay executives, rewards earned from one purchase can be used immediately for the next payment, making the system more engaging and encouraging frequent usage without waiting for monthly statements.
Why RuPay-UPI Is Gaining PopularityThe RuPay-UPI combination is rapidly gaining traction because both systems are operated by the National Payments Corporation of India, ensuring smooth interoperability. This model blends UPI’s ease of use with the spending limits and benefits of credit cards. Importantly, international networks like Visa and Mastercard cannot currently be linked to UPI, giving RuPay a clear competitive edge. As a result, banks and fintech companies are increasingly launching RuPay-based credit products to tap into India’s fast-growing digital payments ecosystem and reach users who prefer domestic payment networks.
Growing Competition in Co-Branded Credit CardsGoogle Pay’s entry adds to an already competitive market for UPI-linked credit cards. PhonePe partnered with HDFC Bank to launch a RuPay credit card and later collaborated with SBI Cards for both Visa and RuPay offerings. Paytm introduced co-branded cards with Citi Bank and HDFC Bank before adding SBI as a partner. Platforms such as Cred and super.money are also offering UPI-connected credit options. This growing competition is driving innovation, better rewards, and improved repayment flexibility for consumers across different income segments.
Flexible Repayment and Google Pay’s StrategyGoogle Pay has positioned the card as a tool to expand credit access rather than just a market-first product. Senior director Sharat Bulusu noted that only about one in five Indians has access to formal credit, leaving a large untapped opportunity. To ease repayment concerns, the card allows users to convert monthly bills into six- or nine-month EMIs. This flexibility, combined with a simple user experience, aims to build trust among new credit users while encouraging responsible borrowing and long-term adoption of digital credit solutions.