Archive — US — techcrunch
Google deepens consumer credit push in India with UPI-linked card
Google is launching a UPI-linked credit card, Flex by Google Pay, in India through Axis Bank to improve consumer credit access. With fewer than 50 million credit cardholders in a country of 1.4 billion, the product aims to bridge the current credit gap while leveraging the rapidly growing UPI payments ecosystem. This initiative also includes a 'Pocket Money' feature for children's digital spending management.
Key points
- Google is introducing Flex by Google Pay in India to tap into the untapped credit market, where fewer than 50 million people hold credit cards.
- The card is integrated with the UPI system, allowing users to manage spending digitally via the Google Pay app.
- Google partners with Axis Bank to reach a digitally active user base, as banks increasingly prefer tech solutions over physical branches for credit distribution.
- The market for co-branded credit cards in India is growing, with projections showing it could capture over a quarter of the total credit cards market by 2028.
- Google also launches 'Pocket Money,' allowing parents to control children's digital payments using UPI Circle, enhancing financial literacy among the youth.
Why it matters
- India's rapid digital payment adoption through UPI has led tech companies to explore embedding credit products into payment apps.
- Historically, consumer finance in India has struggled with low credit card penetration despite significant digital payment growth.
- The launch positions Google against competitors like Amazon and PhonePe, who have already tapped into the co-branded credit card market.
- Trends toward financial inclusivity are rising within the fintech space, with new instruments aimed at younger age groups becoming popular.
Google's launch of the UPI-linked credit card demonstrates its strategic move to amplify financial inclusivity in India's burgeoning digital economy while addressing the challenges of credit access among a vast population.