Google has launched a UPI-linked credit card, further expanding its presence in consumer finance in India, targeting a market where access to formal credit remains limited.
The company has entered India’s co-branded credit card segment with Flex by Google Pay, developed in partnership with Axis Bank. The card is designed to integrate credit into the Unified Payments Interface (UPI) ecosystem, which has become the backbone of everyday transactions in India, with monthly UPI transaction volumes exceeding USD 20 billion in 2025. However, UPI itself is primarily a debit-based system, limiting its ability to build consumer credit histories at scale.
Flex by Google Pay is issued digitally through the Google Pay app and operates on the government-backed RuPay network. It can be used for online and offline payments and includes app-based tools for expense tracking, bill management, installment conversions, and card security controls. A built-in rewards system credits virtual points equivalent to one rupee per unit, which can be redeemed within the ecosystem. Pricing, interest rates, and repayment-related charges vary by user credit profile, with fees and installment costs displayed upfront in the app.
India’s credit card market and growth potential
India’s credit card market has expanded steadily in recent years, though from a relatively small base. The number of outstanding credit cards has grown at a compound annual rate of around 14% over the past three years, reaching approximately 110 million cards. Transaction volumes and values have increased by close to 30% annually, reflecting a shift toward more frequent card usage for everyday spending.
Despite this growth, card adoption remains concentrated among urban and higher-income consumers. Much of the increase in spending has come from existing cardholders receiving higher limits rather than from first-time users entering the credit system. Co-branded credit cards currently account for an estimated 12–15% of total cards in circulation, but are projected to exceed 25% of market volume by 2028, growing at an annual rate of 35–40%, according to industry estimates.
Google’s strategy leverages its scale within India’s digital payments landscape. More than 530 million unique users have made at least one transaction on Google Pay, and over 23 million small merchants have been onboarded to the platform. By embedding credit and additional financial tools directly into a familiar payments app, Google aims to lower barriers to credit adoption while giving banking partners access to a large, digitally active user base.
Alongside the credit card launch, Google is also expanding functionality for families and businesses, including parental payment controls through UPI Circle and new merchant features such as post-transaction ratings and AI-assisted advertising. Together, these initiatives position Google Pay as a broader financial services platform within India’s rapidly evolving fintech ecosystem.
