Google Pay Credit Card: The well-known UPI payments app Google Pay has teamed up with Axis Bank to introduce a co-branded credit card on the RuPay network. Customers can utilize this card for merchant payments by linking it to their UPI account. Unlike the typical credit card industry practice of offering rewards or cashback at the end of the credit cycle month, this card provides instant cashback or rewards.
“We’ve transformed the way you earn rewards. You receive instant rewards with every transaction and can apply them right away on your next purchase,” stated Sharath Bulusu, Senior Director and Product Manager at Google. The Rupay-UPI method is becoming increasingly popular as it combines the convenience and universality of UPI with the credit and rewards features of a standard credit card. It’s important to note that Mastercard and Visa credit cards cannot be linked to UPI. Both Rupay and UPI are managed by the National Payments Corporation of India (NPCI).
Bulsu mentioned that UPI has empowered Google Pay to introduce this innovation, enabling users to redeem their rewards instantly during their next payment. In a competitive landscape, PhonePe, the largest UPI platform in the country, launched its Rupay credit card in June in partnership with HDFC Bank. A month later, it collaborated with SBI Cards to offer credit cards on both Visa and Rupay networks.
Interestingly, Paytm, which began exploring revenue generation early on, introduced its first Paytm-Citibank co-branded credit card in 2019, followed by a partnership with HDFC Bank in 2021. Shortly thereafter, it also included SBI in its roster of credit card banking partners. Other prominent UPI applications such as CRED and super.money also feature co-branded credit cards that can be connected to UPI.
Bulusu mentioned that Google Pay prefers not to enter the market too early and position itself as a rival.
He stated, “Rupay has achieved success for various companies; they have met their goals. One company’s aim might be user growth, another’s could be revenue, and yet another’s might be something different.” Bulusu further noted that only one in five consumers in India has access to credit, and if a business can tackle this challenge, the potential market could be enormous.
Offering flexibility
A key aspect of the Google Pay credit card is its adaptable payment options, allowing customers to settle their monthly bills in EMIs over 6 or 9 months. “We discovered that flexibility and ease in payments are crucial for users, yet challenging to implement, and we aimed to resolve this issue prior to the card’s launch,” Bulusu explained.
Most payment or consumer applications provide 5-10 percent cashback or reward points on transactions made through their platforms, while partner applications and websites typically offer 3-5 percent cashback. Additionally, cards provide 1-1.5 percent cashback on all other transactions, including Scan & Pay for UPI payments. Google Pay also offers an Ace credit card on the VISA network in collaboration with Axis Bank. However, this does not qualify as a fully co-branded card according to RBI regulations.