Google Pay Launches Credit Card in India with Axis Bank on RuPay

Google Pay has launched its first co-branded credit card in India in partnership with Axis Bank. The card is developed on the RuPay network and can be directly linked to a customer's UPI account, enabling people to use it for payments through UPI. The solution combines the convenience of digital transfers and the benefits of credit.

One of the main features of the Google Pay card is its instant cashback or reward points, which will be credited immediately after each purchase. Customers can use the reward on their very next transaction. Many cards in the market offer rewards only at the end of the month.

Why RuPay Matters

RuPay is India's own card payment network, managed by the National Payments Corporation of India. Unlike Mastercard and Visa, RuPay cards can be linked to UPI. This functionality makes the new Google Pay card unique, as it combines the wide acceptance of UPI with the benefits of a credit card.

Competition in the Market

Google Pay is entering the market where other firms are already active. In June, PhonePe, India's biggest UPI app, had teamed up with HDFC Bank to introduce its RuPay credit card. Later, it partnered with SBI Cards to offer both Visa and RuPay credit cards.

Paytm started issuing credit cards with other brands a long time ago. In 2019, it worked with Citibank to offer its first card. In 2021, it worked with HDFC Bank, and subsequently, it added SBI as a partner. Cred and Super.money, among other payment apps, also offer co-branded RuPay credit cards that are compatible with UPI.

Google Pay said that it would not copy others, instead it would focus on solving problems such as making rewards instant and repayments flexible.

Sharath Bulusu, Senior Director and Product Manager at Google, explained that only one in five people in India currently has access to credit. He said that if companies can solve this issue, the market potential is enormous.

Payback Feature

Another important feature of the Google Pay card is that it allows customers to pay back in different ways. Customers can pay their monthly bill in instalments over six or nine months.

Cashback and Reward Rates

Depending on where you spend it, the card gives you different amounts of cash back. Payments made through consumer apps can earn between 5 and 10 per cent cashback or reward points. Payments made on partner apps and websites earn between 3 and 5 per cent cashback. For all other payments, including UPI scan-and-pay transactions, the cashback will range from 1 to 1.5 percent.

Google Pay already has another card called the Ace Credit Card, also in partnership with Axis Bank, which is on the Visa network. According to Reserve Bank of India rules, it does not count as a co-branded card in the strict sense.