Google Pay Enters India’s Credit Card Market with a UPI-Linked Flex Card, Aiming to Expand Digital Credit Access

Google is expanding its presence in the Indian consumer finance market with the launch of Flex by Google Pay, a new UPI-linked credit card. The move demonstrates Google's dedication to improving credit availability in a country where digital payments are frequently utilized but credit card ownership remains low. Out of India's population of over 1.4 billion, less than 50 million people now own a credit card, leaving a significant gap and opportunity.

Flex by Google Pay is a co-branded credit card launched in collaboration with Axis Bank. The card is issued digitally using the Google Pay app and is valid both online and in physical stores. It operates on the RuPay network, making it completely compatible with India's UPI-based payment ecosystem. Users may track their spending, review bills, restrict the card, reset their PIN, and manage repayments all from within the app.

One of the card's primary benefits is flexible repayment. Users can pay their balance in full or in monthly installments. All interest or EMI charges are clearly displayed in advance, which Google claims would make first-time credit users feel more confidence. There is no application fee, but EMI conversions are subject to processing charges, and late fees are determined by the bank. The card also includes a simple rewards system. Users receive virtual "Stars" for transactions, with each Star worth one rupee. This provides an incentive for daily expenditure while making the benefits simple to understand.

Google Pay has previously partnered with banks and lenders to provide personal and gold-backed loans. With this credit card, Google is integrating credit into regular payments. For Axis Bank, the collaboration provides access to a huge number of digitally active people without the need for physical branches.

India's credit card market is rapidly expanding, with both usage and transaction value rising dramatically. However, current cardholders, rather than new users, account for the majority of increase. Google aims to change that by attracting those who are wary of traditional credit cards. Along with the card, Google is launching a "Pocket Money" function. This enables parents to provide their children controlled access to digital payments via UPI Circle, assisting families in establishing secure digital spending habits.

With heavy competition from companies, Google is relying on its widespread reach and trusted payment app to increase credit adoption. The launch demonstrates how payments applications are transforming into entire financial platforms in India's rapidly developing digital economy.

Information referenced in this article is from Techcrunch