Google Pay launches RuPay credit card-based UPI to rival PhonePe
What's the story
PhonePe and Google Pay are the two dominant forces in India's UPI space. While the former has been making moves to enhance its superiority, Google has been awfully quiet over the past few months.
It seems Google's payments app is done with its siesta. It has partnered with the National Payments Corporation of India (NPCI) to launch support for RuPay credit card-based UPI payments.
Context
Why does this story matter?
PhonePe and Google Pay have been battling it out for a while. The former, however, is the clear leader in UPI payments in the country by commanding a 46.38% market share in terms of transactions.
Google Pay is a distant second with a 34.8% market share. With the inclusion of RuPay credit card-based UPI payments, Google is hoping to enhance its appeal.
Credit card
Google Pay only supported linking debit cards till now
Google Pay users can now link RuPay credit cards to their accounts. They will be able to make payments at all online and offline merchants using the same.
Till now, Google Pay only supported linking debit cards to make UPI payments. The Reserve Bank of India (RBI) first permitted the linking of RuPay credit cards to UPI platforms in June 2022.
Information
The app supports RuPay credit cards issued by 8 banks
Google Pay supports linking RuPay credit cards issued by Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, and Union Bank of India at the moment. Support for more banks will follow soon.
Improvement
It will give users more flexibility and choices
Google is a little late to join the 'RuPay credit card for UPI payments' party. Its rival PhonePe added this feature last month.
However, the addition of credit card support has the potential to attract more users to Google Pay.
It will also give "more flexibility" and "choice in making payments" to users, said Sharath Bulusu, Google's director of product management.
How-to
How to add RuPay credit cards to Google Pay?
To add a RuPay credit card to Google Pay, go to settings in the app.
From the 'Set up payment methods' option, tap 'RuPay credit card.' Then, select the credit card-issuing bank.
Now, add details of the credit card like the last six digits, expiry date, and pin. Then, authenticate the card using OTP.
Once authenticated, users can make payments to any UPI vendors.