Google Pay goes live with UPI on RuPay credit cards

In a press note issued on Tuesday, Google said users of Google Pay can now link their RuPay credit cards on the app and make payments through UPI. Currently the Reserve Bank of India has only allowed RuPay credit card users to go live on UPI; other issuers, including Visa and Mastercard, are not allowed.

Currently Axis Bank, Bank of Baroda, Canara Bank, HDFC bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank and Union Bank of India are live with this product. More banks are lined up, the tech major said.

As in previous cases, where consumers had to connect their bank accounts with UPI through their debit cards, in this case they can use their credit cards to validate themselves and get going.

“This feature will give Google Pay users more flexibility and choice in making payments, and will drive greater adoption of digital payments in the country,” said Sharath Bulusu, director of product management from Google

With credit cards on UPI, the ubiquitous digital payment method has enabled the flow of quick credit for the first time. Now, consumers can pay through UPI via their credit lines from banks for both online and offline transactions.

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ET wrote on Monday that NPCI is working closely with a few major banks in the country to push up adoption of RuPay credit cards. It has targeted cornering 10% of the overall payment transactions over the next 12 months.The UPI ecosystem has grown leaps and bounds, processing 8.9 billion transactions this April. Google Pay has a market share of 33% with more than 3 billion transactions, and is second only to PhonePe.