Google Pay has officially stepped into the credit card space, and interestingly, India is the first country to get it. Partnering with Axis Bank, Google Pay has launched its first-ever credit card, and it is trying to fix a long-standing pain point in the credit card ecosystem. Waiting for cashback. The card also does something most global cards cannot. It works seamlessly with UPI, something Visa and MasterCard still cannot offer.
Instant rewards, UPI compatibility, and flexible repayments form the core of this new offering, making it an interesting move in India’s rapidly evolving digital payments landscape.
Google Pay Is Giving Instant Rewards
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Most credit cards make you wait till month-end for cashback. Google Pay’s card credit rewards are immediately available after you pay. Sharath Bulusu from Google explained this well:
“Where we have innovated is the way you can use your rewards. You earn rewards instantly on every transaction, and you can immediately use them on the very next transaction.”
Buy something now, get cashback now, and use it for your next purchase. That’s the hook.
Why RuPay And UPI matter?
RuPay cards work with UPI. But Visa and MasterCard don’t. Both RuPay and UPI come from NPCI, so they play nicely together.
According to Bulusu, UPI made the instant reward system possible. You get UPI’s convenience plus credit card benefits in one package.
Other Giants Have Also Launched Their Credit Cards
Google Pay is not the first. Here is who launched it before.
- PhonePe: Started with HDFC Bank in June, then added SBI cards for both Visa and RuPay options.
- Paytm: Has been at it since 2019 with Citibank, then HDFC in 2021, and SBI Cards after that.
- Cred and super.money: Also have UPI-linked credit cards.
Bulusu said they didn’t want to rush. He explained
“RuPay has been successful for other players. They have been successful for their objective. For someone, the objective might have been user growth, for someone else, it might have been revenue, for someone it might have been something else.”
They waited to solve problems first, mainly around rewards and repayments.
Google Pay Axis Bank Credit Card Benefits
Introducing Google Pay Flex Axis Bank Credit Card
We are incredibly excited about its potential to transform how users engage with credit cards and empower millions to confidently manage their daily finances ✨ https://t.co/e1rZrplJo5 pic.twitter.com/JjYTVvCg6k
— Google India (@GoogleIndia) December 17, 2025Pay Your Bill in Chunks
Big bills stress people out. This card lets you split monthly payments into EMIs over six or nine months. Bulusu said,
“We figured out that flexibility in repayment and simplicity in repayment matter to users, but it is hard to build, and we wanted to solve it before launching the card.”
Cashback Rates
- 5 to 10% on Google Pay payments.
- 3 to 5% on partner sites.
- 1 to 1.5% on everything else, including UPI scan-and-pay.
- Pretty standard rates, but the instant credit makes them feel better.
Bulusu also pointed out something important. Only one in five Indians gets credit access. That’s 80 percent of the market untapped.
“If a company can solve it, the market can be huge,” he said.
Indians have over one billion people without easy credit access. That’s the opportunity here.
Google Pay’s Other Card
Google Pay already has the Ace credit card with Axis Bank on Visa. But it is not technically a co-branded card by RBI rules, and you can’t link it with UPI. This new card fixes both those issues. This new card will:
- Rewards hit your account immediately.
- Works with UPI everywhere.
- EMI flexibility for big purchases.
- Decent cashback percentages.
The timing feels smart from Google Pay. The instant cashback angle is clever because people value rewards more when they are immediate. Waiting a month often kills the excitement. The EMI feature also matters. Many Indians want access to credit but worry about large, one-time payments. Built-in flexibility removes that mental barrier.
That said, credit cards run on trust. Features may look great on paper, but customer service, transparency, and responsible lending decide long-term success. Google Pay and Axis Bank will need to get the basics right while delivering on the promise.
From a user’s point of view, more choice and better features are always welcome. Just remember one thing. Instant rewards feel great, but instant debt can pile up just as fast. Use credit wisely.
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