Google is intensifying its push into the consumer credit market in India by expanding the availability of UPI-linked credit cards. This move aims to provide greater flexibility and convenience to users, further driving the adoption of digital payments across the country.

The expansion builds upon Google's previous initiatives in the Indian financial services sector. In 2018, Google partnered with several Indian banks to offer instant, pre-approved consumer loans through Google Pay. This initiative allowed eligible customers to access customized loans that were directly deposited into their bank accounts. More recently, Google Pay has enabled the linking of RuPay credit cards to its platform, allowing users to make payments at merchants that accept RuPay credit cards.

The linking of credit cards to UPI offers several benefits to consumers. It provides users with an additional payment option, allowing them to make transactions even when they don't have sufficient funds in their bank accounts. It also enables users to take advantage of credit card rewards and benefits, such as cashback and reward points, on UPI transactions. For merchants, the acceptance of UPI-linked credit cards can lead to increased sales and customer loyalty.

To link a RuPay credit card to Google Pay, users need to follow a few simple steps. First, they must register on Google Pay with their official Gmail ID. Then, they need to navigate to the 'Payment Methods' section and choose the option to 'Add RuPay Credit Card'. After selecting their bank and entering their card details, users will need to authenticate the card using an OTP sent to their registered mobile number and set or confirm a UPI PIN for secure transactions.

While UPI transactions made directly through bank accounts are typically free, Google Pay has started to impose convenience fees on bill payments made through credit cards, including RuPay cards. These fees, which can range from 0.5% to 1% plus GST, are dependent on the transaction type and may impact high-value transactions.

The increasing popularity of UPI-linked credit cards reflects the broader growth of the consumer credit industry in India. Factors such as rising disposable incomes, increasing internet penetration, and the convenience of digital payments are driving demand for consumer credit products. This trend is particularly noticeable among young, non-metro, and increasingly female customers.

However, the rapid growth of consumer credit also poses certain risks. The Reserve Bank of India (RBI) has cautioned against a potential build-up of risk in the consumer credit segment and has asked banks and non-bank lenders to maintain higher risk weights for their exposure to unsecured retail loans. This move aims to ensure the stability of the financial system and protect consumers from excessive debt.

Despite these concerns, Google's deepening push into consumer credit in India signals its confidence in the long-term growth potential of the market. By offering UPI-linked credit cards, Google is providing consumers with greater choice and convenience while further solidifying its position in India's rapidly evolving digital payments landscape.