Google deepens consumer credit push in India with UPI-linked card

Core Insights - Google is entering the consumer finance sector in India by launching a UPI-linked credit card, Flex by Google Pay, in partnership with Axis Bank, targeting a market with over 1.4 billion people and fewer than 50 million credit card holders [1][2] Group 1: Product Features - Flex by Google Pay is issued digitally through the Google Pay app and can be utilized for both online and physical transactions, built on the RuPay network [3] - The card features a rewards program that credits virtual "Stars" for transactions, with each Star valued at ₹1, and allows users to manage spending, repayments, and security settings within the app [3] Group 2: Market Context - The rapid adoption of digital payments in India through the UPI has not yet resulted in widespread access to credit, creating opportunities for tech companies and banks to integrate lending into payment apps [2] - The Indian credit card market has been growing at an annual rate of approximately 14% over the past three years, with outstanding cards reaching around 110 million and transaction volumes increasing by nearly 30% [7] Group 3: Strategic Partnerships - Google Pay has previously partnered with banks and non-bank lenders to offer personal and gold-backed loans, leveraging its position as a widely used UPI platform to enhance credit access [4] - While starting with Axis Bank, Google plans to onboard additional issuer partners to broaden its co-branded credit card offerings in India [5]