Google Pay FLEX Card Launch: Pay via UPI Using Credit Instantly in India
Google Pay FLEX, co-branded with Axis Bank, lets users pay merchants via UPI using credit, with instant cashbacks. Digital credit meets UPI convenience.
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Through its collaboration with Axis Bank, Google Pay has introduced the FLEX credit card—a co-branded digital card that intends to combine credit card and UPI payment functions in India. The card is issued on RuPay's behalf and enables users to carry out UPI transactions based on credit by mere QR code scanning, which extends the use of digital payments to everyday transactions.
The FLEX card creates a link between a user's credit account and their UPI profile located in the Google Pay app. As a result, UPI payment at merchants may be done with credit, thereby combining the instant payment convenience of cash with the flexibility of credit usage. The conditional aspect in the case of traditional credit cards is that FLEX will give the user instant rewards or cashback at the point of sale instead of at the end of the billing cycle.
Potential applicants for the FLEX card need to have the Google Pay app and be eligible to apply at no cost. After approval, a virtual card is instantly generated. The introduction is done gradually, and there is a waitlist in place for new applicants. Google states that the completely digital onboarding process is meant to simplify the process and motivate the credit payment habit in the traditional UPI-based workflows.
In addition to the FLEX card, Google Pay has introduced "Pocket Money," a feature designed to assist parents in teaching children how to handle money. It is built on the UPI Circle concept and allows parents to keep track of their kids' spending with presets of up to Rs 15,000 for a month or by giving approvals for each transaction. For small businesses, Google Pay has already introduced features like customer rating after the payment and AI-generated advertising through the Google Pay for Business app.
Key Highlights
FLEX card is a product in alliance with Axis Bank and enables UPI-linked credit payments.
Cashbacks and rewards are given instantly at the moment of transaction.
The Pocket Money feature offers controlled spending within the UPI Circle system.
Impact of UPI-linked Credit Card on Digital Payments in India
The coming of UPI-linked credit card is a huge change in the payment ecosystem of India as it has merged the use of traditional credit lines with that of instant digital payments. Google Pay is looking to incorporate financial inclusion, leeway for small businesses, and responsible usage of digital finance with the help of one platform consisting of credit, parental controls, and merchant tools.
