Google Launches UPI-Linked Credit Card in India via Axis Bank

In Focus

• Google UPI-linked credit card India expands access through co-branded launch with Axis Bank
• Digital issuance via Flex by Google Pay deepens credit integration within India’s UPI ecosystem
• Users gain rewards, in-app management, and flexible repayment options for credit
• Move targets credit inclusion gap as UPI payment adoption outpaces traditional credit usage

In a significant market development, Google has introduced a Google UPI-linked credit card India product to deepen its consumer finance footprint in the country’s digital payments ecosystem, according to TechCrunch. The new offering, named Flex by Google Pay, marks the company’s entry into India’s co-branded credit card segment in partnership with Axis Bank, leveraging the government-backed Unified Payments Interface (UPI) network to distribute credit digitally.

How Credit Is Being Integrated Into UPI Payments

Google’s Flex by Google Pay initiative introduces a UPI-linked credit card launch tailored to India’s digital economy, where UPI payments have seen exponential growth in recent years. The card is issued digitally through the Google Pay app and operates on the Indian government-backed RuPay network, allowing credit usage for both online purchases and point-of-sale transactions. Earlier this year, Google Wallet removed PayPal support in the U.S. as a payment method.

Key product features include:

• A rewards programme that credits virtual “Stars” for transactions, where one-Star equals ₹1
• In-app spending and payment management, including full repayment or conversion to installment plans
• Flexible security controls such as card blocking and PIN reset within the app
• Pricing components like interest and fees that vary based on individual credit profiles, with no application fee

The integration broadens the scope of Google Pay credit card India offerings by embedding credit functionality directly in the payment layer that more than half a billion users engage with monthly. India’s UPI framework has enabled the linking of credit cards to payment apps since 2022, with banks increasingly supporting RuPay credit card payment routing through UPI IDs and QR codes.

Credit Market Context Behind Google’s India Move

The launch of the Google UPI-linked credit card India product underscores a strategic bet on expanding access to formal credit beyond traditional cardholders, especially as UPI transaction volume continues to dominate digital payments.
Co-branded credit cards are emerging as a growth segment in India, with platforms such as Flipkart, Amazon, and PhonePe already competing in this space. In other news, e-commerce leaders Amazon and Flipkart are preparing to offer credit directly, targeting both consumers and small businesses in the Indian financial services market.

In addition to credit card functionality, Google is expanding features such as “Pocket Money” within Google Pay, facilitating controlled spending for younger users, and leveraging recently introduced UPI Circle capabilities. These layered integrations signal a broader push toward ecosystem-level financial services within the platform’s offerings.

“It’s the same users getting more and more credit,” said Sharath Bulusu, senior director of product management for Google Pay, emphasizing the company’s approach to designing flexible repayment options for new credit users, as quoted in TechCrunch.

What This Means For Fintech Platforms and Banks

The arrival of the Flex by Google Pay credit product in India reflects evolving monetization strategies within digital payments platforms. As more RuPay credit card holders link their cards to UPI applications, payment behavior is shifting toward digital rails that support seamless transactions with minimal friction.

For banks and lenders, partnering with digital platforms like Google Pay opens new distribution channels for credit products without requiring extensive physical infrastructure. This model aligns with broader industry trends toward embedded finance, where credit and lending services are offered within popular consumer touchpoints rather than through standalone banking channels.