Google is increasing its push into shopper finance in India with the launch of a UPI-linked bank card, betting on a rustic of greater than 1.4 billion folks the place fewer than 50 million at present maintain a bank card.
On Wednesday, Google entered India’s rising co-branded bank card market with the launch of Flex by Google Pay, partnering with non-public lender Axis Financial institution to increase entry to credit score within the nation’s UPI-driven funds ecosystem.
India’s speedy adoption of digital funds by the government-backed Unified Funds Interface (UPI) has reworked how shoppers pay however has not translated into broad entry to credit score. That hole has created a possibility for expertise firms and banks to embed lending into extensively used funds apps, serving to clarify Google’s transfer into the house.
Flex by Google Pay is issued digitally by the Google Pay app and can be utilized each on-line and at bodily retailers, the corporate mentioned. Constructed on the Indian government-backed RuPay community, the cardboard features a rewards programme that credit digital “Stars” on transactions, with every Star price ₹1. Customers can monitor spending and payments throughout the app, select to repay balances in full or convert them into installments, and handle safety settings reminiscent of blocking the cardboard or resetting a PIN.
The launch builds on Google Pay’s broader effort to increase entry to credit score in India, the place it has already partnered with banks and non-bank lenders to supply private and gold-backed loans by the app. As one of many nation’s most generally used UPI platforms, Google Pay provides Axis Financial institution entry to a big, digitally energetic person base at a time when lenders are more and more seeking to scale credit score distribution by expertise platforms quite than bodily branches.
Whereas Google has began with Axis Financial institution, it goals so as to add extra issuer companions quickly to increase its co-branded bank card providing in India.
Pricing on the cardboard, together with curiosity and relevant fees, will differ by person and credit score profile, with no software price, Google mentioned, including that fees linked to compensation selections are proven upfront within the app. Processing charges apply to EMI conversions, and late cost fees will probably be levied according to the issuing financial institution’s coverage.
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India’s bank card market has been increasing quickly in recent times. The variety of excellent playing cards has grown at an annual charge of about 14% over the previous three years to round 110 million, whereas transaction volumes and values have risen at near 30%, per a current PwC report (PDF). Common annual spending per card has elevated from about ₹132,000 (round $1,450) to roughly ₹192,000 (about $2,100), suggesting playing cards are getting used extra often for routine funds quite than occasional big-ticket purchases.
Regardless of progress within the variety of excellent playing cards and bank card spending in India, the growth has largely been pushed by current customers quite than a significant enhance within the variety of cardholders. Google goals to assist tackle that hole by bringing new customers into the credit score system, significantly these cautious of conventional card compensation buildings. “It’s the identical customers getting an increasing number of credit score,” mentioned Sharath Bulusu, senior director of product administration for Google Pay, including that versatile compensation choices are designed to ease considerations round unpredictable billing for first-time credit score customers.
“We predict we now perceive the issue, the house and the person properly sufficient to unravel one thing uniquely for them,” Bulusu instructed TechCrunch, explaining Google’s timing.
Google’s transfer comes amid rising competitors in India’s co-branded bank card market, the place firms together with Amazon, in addition to Walmart-owned Flipkart and PhonePe, already supply related merchandise. Client web platforms reminiscent of meals supply corporations Swiggy and Zomato, together with on-line journey firms together with MakeMyTrip and Yatra, have additionally entered the house in partnership with banks.
Co-branded bank cards accounted for about 12–15% of India’s whole bank cards within the monetary yr ended 2024 and are projected to seize greater than 1 / 4 of the market by quantity by 2028, rising at an annual charge of 35–40%, based on a report (PDF) by consultancy agency Redseer.
Alongside the co-branded card launch, Google can also be rolling out “Pocket Cash,” a characteristic within the Google Pay app that lets mother and father give youngsters restricted entry to digital funds. Constructed on the not too long ago launched UPI Circle performance, the characteristic lets mother and father set a month-to-month spending cap of as much as ₹15,000 or approve particular person transactions initiated by the kid.
Mother and father obtain notifications for every transaction and might view spending historical past or pause entry to the characteristic by their very own Google Pay app, the corporate mentioned. The transfer might additionally assist Google broaden Google Pay’s utilization and addressable market in India, the place it competes carefully with Walmart-backed PhonePe among the many nation’s main UPI platforms.
Google’s Pocket Cash characteristic follows earlier efforts by Indian fintechs reminiscent of FamPay and Junio, which sought to allow youngsters’s digital spending by pay as you go playing cards. Nevertheless, in contrast to pay as you go devices, Google makes use of the UPI Circle framework to let mother and father retain management of funds till the second a transaction is made, quite than loading cash prematurely.
“With UPI Circle, the cash stays within the dad or mum’s account till it’s spent,” Bulusu mentioned, including that the method makes it simpler for households already snug utilizing Google Pay to introduce youngsters to digital funds. He mentioned the characteristic displays a broader wager on acquainted funds apps as a solution to construct monetary confidence amongst youthful customers as digital funds grow to be extra pervasive.
Google can also be upgrading the expertise for small companies on Google Pay, permitting prospects to charge retailers instantly after a transaction, with these opinions syncing to the service provider’s Google Maps itemizing. The corporate can also be rolling out an AI-powered promoting characteristic throughout the Google Pay for Enterprise app that assists retailers in creating and launching adverts.
Greater than 530 million distinctive customers have made no less than one cost by Google Pay, whereas over 23 million small retailers have been onboarded to the platform over time, Bulusu mentioned. That attain, he added, provides the corporate confidence it might probably introduce new monetary merchandise to customers already snug transacting digitally.
