Google launches a credit card in India with probably one of the most disappointing rewards programs ever

We’ve been waiting for this one. For years, rumors have swirled about Google entering the lending space in India with a bang. Well, the bang is finally here, and it sounds more like a whimper.

Google Pay, in partnership with Axis Bank, has launched the Google Pay Flex Axis Bank Credit Card. It is a digital-first, UPI-centric credit card on the RuPay network.

If you are a UI/UX nerd, this card is a dream. If you are a “Rewards” nerd, this card is a nightmare.

Let’s break down the Good, the Bad, and the strategic reason why applying for this card might actually hurt your financial portfolio.

The Good: Finally, a Credit Card App That Doesn’t Suck

Let’s give credit where it is due: The user experience is fantastic.

If you have ever suffered through the laggy, clunky interfaces of traditional banking apps (looking at you HDFC), the Google Pay Flex experience will feel like teleporting into the future.

Native Integration: Everything lives inside the Google Pay app you already use. No separate “Axis Mobile” app required.
Instant Control: You can manage bills, credit limits, and repayment options directly from GPay.
Simplicity: It mimics the “Apple Card” philosophy—taking a complicated financial product and making it look clean, simple, and friendly.

For the average user who hates remembering passwords for five different banking portals, this convenience is a massive selling point. It is marketed as “everyday credit” for the UPI generation. Unfortunately, that marketing falls apart when you look at the math.

The Bad: The 0.2% Return

Google is marketing a reward currency called “Stars.” Their headline claim is bold: “One star is equal to ₹1.”

Usually, 1 reward point is 20 paise. Here, it is a whole Rupee! Sounds amazing, right?

Wrong. You have to look at the earning rate, not just the redemption value.

Base Earning: You earn 1 Star on every ₹500 spent.
The Real Math: ₹1 return on ₹500 spend = 0.2%.

You read that right. The base reward rate of this card is 0.2%.

To put that in perspective, spending ₹10,000 on this card earns you ₹20. That is barely enough to buy a cutting chai in Mumbai. Most entry-level cards offer 1% (₹100 return).

The Ugly: The “Small Spends” Trap

Here is the kicker that most people will miss until they see their statement: The minimum transaction threshold appears to be ₹500.

The terms state you earn “1 star on every ₹500 spent.” This implies a step-function reward system.

Spend ₹499? You earn 0 Stars.
Spend ₹990? You earn 1 Star (worth ₹1).
Spend ₹150? You earn 0 Stars.

Why this breaks the card:

Google markets this for “everyday credit” via UPI. But think about your actual “everyday” UPI transactions: Chai (₹20), Auto rickshaw (₹80), Snacks (₹150), Vegetables (₹200).

You will earn absolutely nothing on these transactions.

If you use this card 5 times a day for small transactions totaling ₹1,500, you could easily end up with 0 rewards because no single transaction crossed ₹500.

The Dealbreaker: The “3-Card” Rule

Even if you ignore the bad rewards, here is the strategic reason to avoid this card: The Axis Bank Slot Limit.

Axis Bank typically limits customers to 3 credit cards maximum (with rare exceptions).

If you take the Google Pay Flex card, you are burning one of those precious slots on a card that gives you 0.2% returns. This prevents you from getting the actual powerhouses of the Axis portfolio.

The Opportunity Cost:

Would you rather have a fancy looking card in your GPay app, or a card like Airtel Axis that can save you ₹6,000 - ₹8,000 a year? Don’t block your slot.

The Comparison: Flex vs. The Rest

1. Scapia Federal Card

RuPay Variant: Also has a minimum spend of ₹500 to earn rewards on UPI. You earn 1% value in return.
Visa Variant (Main Card): Earns 10% coins (2% value) on transactions as low as ₹20.
Verdict: While Scapia’s RuPay variant shares the ₹500 flaw, their main card is infinitely better for small swipes.

Scapia’s current promotion makes it even more attractive.

2. Tata Neu Infinity

Rewards: 1.5% back as NeuCoins on UPI.
Minimum: The threshold is much lower (typically requires enough spend to earn 1 point, around ₹100-₹150).
Verdict: You actually get rewarded for your lunch and coffee.

The Verdict

Don’t get this card.

Unless you absolutely cannot get approved for any other credit card and need to build your CIBIL score from scratch, there is no reason to hold the Google Pay Flex card.

Rewards: Terrible (likely 0.4% if you use the card regularly).
Utility: Low (No rewards on small UPI spends).
Strategy: Dangerous (Wastes a valuable Axis Bank slot).

Google has built an incredible payments ecosystem in India with UPI. It’s a shame their debut credit card product relies on the brand name rather than offering genuine value to the consumer.