Google has introduced a UPI-linked credit card, enhancing its role in the Indian consumer finance sector and addressing the limited access to formal credit among many Indians.
Flex by Google Pay
The company entered India’s co-branded credit card market through Flex by Google Pay, a collaboration with Axis Bank. This digital card operates via the Google Pay app and is part of the government-backed RuPay network. It supports both online and offline payments and includes tools for expense tracking, bill management, installment conversions, and card security controls.
Flex by Google Pay offers an integrated rewards system where virtual points equivalent to one rupee are credited per unit spent, which can be redeemed within the app’s ecosystem. Pricing, interest rates, and repayment-related charges vary based on individual credit profiles, with all associated costs displayed upfront in the app.
The Credit Card Market in India
India’s credit card market has seen a steady expansion over recent years, though it started from a modest base. The number of outstanding credit cards grew at an average annual rate of around 14% over the past three years, reaching approximately 110 million cards. Transaction volumes and values have increased by nearly 30% annually, showing a trend towards more frequent card usage for everyday spending.
Despite this growth, credit card adoption remains largely concentrated among urban areas and higher-income consumers. Much of the increase in spending has been driven by existing cardholders receiving higher limits rather than new users entering the credit system. Co-branded credit cards currently account for about 12-15% of total cards in circulation but are expected to grow to exceed 25% of market volume by 2028, increasing at an annual rate of 35-40%, according to industry estimates.
Google’s strategy aims to leverage its extensive presence within India’s digital payments ecosystem. With over 530 million unique users making transactions on Google Pay and more than 23 million small merchants onboarded, the company seeks to reduce barriers to credit adoption while providing banking partners with access to a large, digitally active user base.
Through this initiative, Google is also expanding functionalities for families and businesses, including parental control over UPI payments through UPI Circle and new merchant features such as post-transaction ratings and AI-assisted advertising. These measures position Google Pay as a comprehensive financial services platform in India’s evolving fintech landscape.
