8:30 PM IST – Google Pay has formally entered India’s mainstream credit card space with the launch of the Google Pay Flex Axis Bank Credit Card. It is a fully digital, UPI-first credit card issued by Axis Bank and powered by the RuPay network. On Dec 17, they announced via blog.google.
While RuPay UPI-linked credit cards already exist in the market, Flex marks Google Pay’s first attempt to repackage credit cards around UPI behaviour, rather than traditional card usage. The focus is not on inventing a new credit product, but on simplifying how users apply, pay, track their spending, and redeem rewards—entirely within the Google Pay app.
What Google Pay Is Actually Trying to Do
India still has only about 50 million credit card holders, despite UPI becoming the default payment method for everyday spending across urban and non-metro regions. Google Pay believes the gap is less about eligibility and more about complexity.
Over the last few years, Google Pay has expanded lending access through partnerships with IDFC First Bank, L&T Finance, PayU Finance, and SMFG India Credit, reaching users across 15,000+ PIN codes, mostly in Tier-2 and smaller cities. Flex builds on that groundwork, but shifts the focus from loans to transactional, daily-use credit.
How the Flex Credit Card Works
At its core, Flex is a standard credit card. It comes with a defined credit limit, a monthly billing cycle, a due date, and finance charges as decided by Axis Bank. There is no physical card at launch—the card is issued digitally and linked directly to the user’s Google Pay account.
Because Flex runs on RuPay, users can:
- Scan and pay at UPI QR codes where RuPay credit is accepted
- Use it for online payments at merchants accepting RuPay cards
- Use it like a normal card at in-store RuPay terminals
The key difference is that the payment flow feels like UPI, while the settlement happens through a credit card account.
Rewards, Controls, and How “Stars” Work
Flex uses a reward system called Stars, designed to be simple and immediate.
- 1 Star = ₹1
- Earn 1 Star for every ₹500 spent
- Higher spending can unlock 4X and 8X reward tiers in the same reward cycle
- Stars can be redeemed instantly on Flex payments made through Google Pay
Unlike traditional cards, where rewards are redeemed after statement generation, Flex allows users to redeem rewards at the time of payment. Users can also manage limits, view due amounts, track transactions, convert eligible spends into EMIs, and pause or block the card directly from the Google Pay app.
Fees & Charges Snapshot
- Joining fee: Nil
- Annual fee: Nil
- Finance charges: 3.75% per month (≈55.54% annually)
- Foreign currency transaction fee: 3.5%
- Rent payment fee: 1% per transaction
- Reward redemption fee: Nil
GST applies as per government norms. EMI processing fees and other charges apply as per the issuer’s policy.
How Flex Compares With Existing RuPay Credit Cards
| Area | Existing RuPay UPI Credit Cards | Google Pay Flex |
|---|---|---|
| UPI QR payments | Already supported | Already supported |
| App experience | Bank-led apps | Google Pay-led UI |
| Rewards | Usually delayed | Instant “Stars” redemption |
| Card management | Bank ecosystem | Fully inside Google Pay |
| Target user | Existing card users | First-time + UPI-native users |
So the uniqueness of Flex is not technology, but experience simplification at scale.
Nanne Parmar Take
UPI-linked RuPay credit cards are already part of daily life, even in Tier-2 and Tier-3 cities. In that sense, Flex is not introducing a new way to pay.
What Google Pay is doing differently is bringing the entire credit card experience into one familiar app—from application and usage to rewards and repayments. The advantage is not technology, but simplicity and distribution.
For existing RuPay card users, Flex may feel incremental. But, For UPI-only users who have never used a credit card, it lowers the entry barrier.
Flex’s success will depend less on novelty and more on execution—transparent charges, clear repayment nudges, and responsible usage. If done right, it can become a natural first credit card for UPI-native India.
