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Google Pay has taken a major step in India’s fast-growing digital payments and credit market by launching a co-branded RuPay-UPI credit card in partnership with Axis Bank. With this new offering, users can link the credit card directly to their UPI account and use it for merchant payments, while earning instant cashback or rewards on every transaction.

This launch marks a significant shift in how credit cards and UPI payments work together, as it combines the ease and wide acceptance of UPI with the credit and reward benefits of a traditional credit card.

What Makes the Google Pay RuPay-UPI Credit Card Different?

Unlike conventional credit cards, where reward points or cashback are usually credited at the end of the billing cycle, Google Pay’s new RuPay-UPI credit card offers instant rewards. Users earn cashback or reward points immediately after completing a transaction and can redeem those rewards on their very next payment.

Sharath Bulusu, Senior Director and Product Manager at Google, said the company has reimagined how rewards should work. According to him, users no longer need to wait weeks to use their benefits. Rewards earned on one transaction can be applied instantly to the next, making the experience more seamless and engaging.

This instant redemption model sets the card apart from most credit cards currently available in the Indian market.

Growing Popularity of RuPay-UPI Credit Cards

The RuPay-UPI credit card model is gaining popularity because it merges two powerful systems. On one side, UPI offers simplicity, speed, and near-universal acceptance across merchants in India. On the other, credit cards provide access to credit, rewards, and flexible repayment options.

It is important to note that credit cards issued on Mastercard and Visa networks cannot be linked to UPI. Only RuPay credit cards support UPI integration. Both RuPay and UPI are operated by the National Payments Corporation of India (NPCI), which has played a key role in expanding digital payments nationwide.

Rising Competition Among UPI Platforms

Google Pay is entering an already competitive space. India’s largest UPI platform, PhonePe, launched its RuPay credit card in partnership with HDFC Bank in June. A month later, PhonePe expanded further by teaming up with SBI Cards to offer credit cards on both Visa and RuPay networks.

Paytm, which started monetising its platform earlier than many competitors, launched its first co-branded credit card with Citibank in 2019. In 2021, Paytm partnered with HDFC Bank and later added SBI as another banking partner for its credit card offerings.

Other popular fintech and UPI-linked platforms such as CRED and super.money have also introduced co-branded credit cards that can be linked to UPI, intensifying competition in the digital credit space.

Despite the crowded market, Google Pay has indicated that it does not want to enter aggressively as a direct competitor. Bulusu noted that different companies have different objectives—some focus on user growth, others on revenue, and some on solving specific gaps in the ecosystem.

Addressing India’s Credit Access Gap

One of the key motivations behind Google Pay’s credit card push is the low level of credit penetration in India. According to Bulusu, only about one in five Indians currently has access to formal credit. This represents a massive untapped opportunity.

If digital platforms can simplify access to credit while keeping the user experience transparent and flexible, the potential market could expand significantly. Google Pay believes its ecosystem, combined with UPI and RuPay, is well-positioned to help bridge this gap.

Flexible Repayment Options for Users

Another standout feature of the Google Pay RuPay-UPI credit card is payment flexibility. Users can choose to repay their monthly credit card bills through EMIs, with options such as 6-month or 9-month instalments. This flexibility is particularly useful for users managing larger expenses or irregular income.

According to Google, making payments flexible and simple was a key challenge, and the company wanted to resolve this before launching the card. The goal is to make credit usage less stressful and more accessible for everyday users.

Cashback Structure and Additional Benefits

Typically, consumer and payment apps offer cashback of around 5–10 percent on payments made within their own platforms, while partner apps and websites offer lower rewards of about 3–5 percent. With the new Google Pay credit card, users can also earn 1–1.5 percent cashback on UPI payments, including scan-and-pay transactions at merchant locations.

This ensures that even routine UPI payments contribute to rewards, encouraging wider usage of the card for daily spending.

Google Pay’s Existing Credit Card Partnership

It is worth noting that Google Pay already has the Axis Bank ACE credit card on the Visa network. However, as per RBI guidelines, that card is not considered a fully co-branded product. The newly launched RuPay-UPI credit card represents a deeper integration between Google Pay and Axis Bank.

With this launch, Google Pay has strengthened its position in India’s digital payments and credit ecosystem, offering users a faster, more rewarding, and flexible way to use credit through UPI.