Axis Bank and Google Pay Target UPI-Native Credit Users

After transforming how India pays, UPI is now quietly reshaping how the country accesses credit. Google Pay and Axis Bank have jointly launched Flex, a UPI-powered, co-branded credit card offering that aims to collapse the traditional boundaries between cards, payments, and apps.

The Google Pay Flex Axis Bank Credit Card, built on the RuPay network, is the first product under this new Flex offering. It is designed to make credit function as seamlessly as UPI payments, digital-first, app-native, and instantly usable.

For users, the promise is simple: apply within minutes, pay anywhere UPI is accepted, track spending inside the Google Pay app, earn rewards instantly, and convert bills into EMIs without leaving the platform.

For the ecosystem, the implications run deeper.

When Credit Starts Behaving Like UPI

India’s digital payments story has largely been a debit-led revolution. While UPI volumes have exploded, transactional credit has lagged behind, constrained by onboarding friction, delayed rewards, and fragmented repayment experiences.

Flex attempts to address this gap by embedding credit directly into the payment flow users already trust and use daily.

Built on RuPay, the Google Pay Flex Axis Bank Credit Card allows users to scan and pay at millions of offline merchants or transact across apps, mirroring the universality of UPI. Unlike traditional credit cards, the card lives entirely on the phone, removing physical paperwork and manual processes from the equation.

Rewards, often delayed in conventional card programmes, are instantly redeemable. Each Star earned carries a value of ₹1 and can be applied immediately to Flex transactions.

Google Pay’s Platform Play in Financial Services

For Google Pay, Flex marks a strategic expansion beyond payments into embedded credit.

“At Google Pay, our goal has always been to use technology to make financial products simple and accessible for everyone. While digital payments have become ubiquitous in India, transactional credit remains underpenetrated. We built Flex to bridge this gap, simplifying and reimagining the card experience for the next generation of users,” said Sharath Bulusu, Senior Director – Product Management, Google Pay.

He added, “We’re thrilled to launch this first with Axis Bank and look forward to announcing more issuer partners very soon. By combining the widespread acceptance of the RuPay network and Axis Bank’s financial expertise with the trusted experience of Google Pay, we’re introducing a digital solution aiming to give users in India genuine confidence and control in their daily lives.”

The emphasis on multiple issuer partnerships suggests Flex is being positioned as a scalable platform rather than a one-off co-branded card.

Designing Credit for a Digital-First Consumer

From Axis Bank’s perspective, the partnership reflects a broader shift in how banks distribute credit products in a UPI-dominant market.

“With UPI emerging as the preferred mode of payment, we identified a clear opportunity to co-create a credit offering tailored for the digital-first consumer,” said Arnika Dixit, President & Head – Cards, Payments and Wealth Management, Axis Bank.

“This brings together Axis Bank’s leadership in financial solutions and Google Pay’s cutting-edge technology to simplify everyday transactions with instant rewards, flexible repayment options, and more,” she added. “Seamlessly integrated into the Google Pay app, this card delivers a secure, convenient and rewarding experience that perfectly complements the modern Indian lifestyle.”

The integration highlights how banks are increasingly relying on consumer platforms to meet users where they already transact.

NPCI Signals the Next Phase of Everyday Payments

NPCI sees Flex as a continuation of its push to make digital payments more embedded and frictionless.

“We remain committed to delivering trusted and seamless digital payment experiences for consumers, and the Google Pay Flex Axis Bank Credit Card furthers this mission by making everyday payments smarter,” said Sohini Rajola, Executive Director – Growth, NPCI.

“Users can enjoy enhanced convenience and instant rewards, all within a frictionless journey.”

What the Flex Card Brings to the Table

The Google Pay Flex Axis Bank Credit Card introduces several app-led controls and features:

• Fully Digital Onboarding: Zero-cost application with no physical paperwork. Users can start transacting within minutes.

• UPI-First Acceptance: Scan-and-pay at offline merchants and use across apps on the RuPay network.

• Instant Reward Redemption: Stars earned can be redeemed immediately on Flex transactions.

• Flexible Repayments: Track spends, pay in full, or convert bills into EMIs directly within Google Pay.

• In-App Card Controls: Users can block or unblock the card and reset their PIN instantly.

Flex arrives at a time when India’s payments infrastructure is mature, but credit penetration remains uneven. By embedding credit into UPI behaviour, Google Pay and Axis Bank are effectively testing whether familiarity and simplicity can unlock broader credit adoption.

As Flex rolls out to users over the coming months, its performance may offer early signals on whether UPI can evolve from a payments rail into a mass-market credit distribution channel.

Interested users can join the waitlist directly within the Google Pay app.