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Google Pay has partnered with Axis Bank to launch its first co-branded credit card on the RuPay network. This card can be directly linked to users’ UPI accounts, allowing payments at merchants using credit while still leveraging UPI convenience.

Instant Cashback and Rewards

The card’s highlight is instant cashback and rewards on every transaction. Unlike traditional credit cards, where rewards are credited at the end of the billing cycle, users can immediately use earned rewards for their next payment. According to Sharat Bulusu, Senior Director and Product Manager at Google, this makes transactions more rewarding and seamless for users.

Why RuPay-UPI Model is Gaining Popularity

Both RuPay and UPI are managed by the National Payments Corporation of India (NPCI). The RuPay-UPI model is becoming popular because it combines UPI’s accessibility with credit card benefits such as limits and rewards. Currently, Visa and Mastercard cards cannot be linked to UPI, giving RuPay an advantage in this segment.

Growing Competition in Co-Branded UPI Credit Cards

The UPI-linked co-branded credit card segment is competitive:

• PhonePe launched a RuPay credit card with HDFC Bank in June and later introduced Visa and RuPay options with SBI Cards.

• Paytm launched co-branded cards with Citi Bank (2019) and HDFC Bank (2021), later including SBI.

• Apps like Cred and super.money also offer UPI-linked credit cards.

Google Pay aims to focus on product quality and usability rather than being first in the market. According to Bulusu, only 1 in 5 Indians currently has access to credit, and bridging this gap presents a significant opportunity.

Flexible EMI Options

The card also offers flexible repayment options, allowing users to pay their monthly bill in 6 or 9-month EMIs. Google emphasizes that simplicity and flexibility in repayments are essential for users.

Cashback and Rewards Structure

• On-platform transactions: 5–10% cashback

• Partner apps and websites: 3–5% cashback

• Other payments (including UPI Scan & Pay): 1–1.5% cashback

Existing Ace Credit Card

Google Pay already has an Ace credit card with Axis Bank, operating on the Visa network, but it is not classified as a fully co-branded card according to RBI guidelines.