Google Pay Launches UPI-Linked Credit Card with Axis Bank

Google Pay has launched a new co-branded digital credit card, FLEX, in partnership with Axis Bank, marking a significant step in the convergence of credit cards and UPI-based payments in India. Built on the RuPay network, the Google Pay Flex Axis Bank Credit Card allows users to make credit-powered UPI payments by scanning QR codes, expanding the scope of digital payments for everyday transactions.

UPI and Credit Integration Through FLEX Card

The FLEX credit card enables users to link their credit line directly to their UPI account within the Google Pay app. This allows customers to pay merchants using UPI while spending on credit, combining the simplicity of QR-based payments with the flexibility of a credit card. Unlike conventional credit cards, FLEX offers instant cashbacks or rewards at the time of transaction rather than at the end of the billing cycle.

Instant Digital Issuance and User Benefits

Google stated that eligible users can apply for the FLEX card at zero cost directly through the Google Pay app and receive a virtual card within minutes. The card is currently being rolled out in phases, with users able to join a waitlist. The company highlighted that the fully digital onboarding process is designed to remove friction and encourage wider adoption of formal credit through familiar UPI workflows.

New Financial Tools and Merchant Features

Alongside the credit card launch, Google Pay introduced “Pocket Money”, a feature aimed at helping parents teach children financial responsibility. Built on the UPI Circle framework, it allows supervised spending through monthly limits of up to ₹15,000 or transaction-by-transaction approval. Google Pay also rolled out new tools for small merchants, including post-payment customer ratings and generative AI-powered advertising features within the Google Pay for Business app.

What to Note for Exams?

• Google Pay FLEX is a co-branded credit card launched with Axis Bank.
• The card is built on the RuPay network and supports UPI-linked credit payments.
• Rewards and cashbacks are credited instantly at the time of transaction.
• ‘Pocket Money’ is based on the UPI Circle framework.

Impact on India’s Digital Payments Ecosystem

The launch of a UPI-linked credit card signals a shift in India’s digital payments landscape, blurring the line between bank credit and instant payments. By integrating credit access, parental controls, and merchant tools into a single platform, Google Pay aims to deepen user engagement while supporting financial inclusion, small businesses, and responsible digital finance adoption.