Digital payment methods in India are changing. It will no longer be possible to pay for purchases using credit cards through fintech apps like PhonePe, Paytm, and CRED. Payment aggregators have had to discontinue this feature due to new guidelines issued by the RBI.
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Credit Card Rent Payment: You will no longer be able to pay your rent using a credit card. Major fintech platforms like PhonePe, Paytm, CRED, and Amazon Pay have discontinued this feature. This facility was quite popular among people in the last few years because it offered convenience in paying rent, along with benefits like reward points and cashback. However, the RBI has issued new regulations effective September 15, 2025, after which this facility has been discontinued.
According to the new RBI rules, a payment aggregator can only process transactions for merchants with whom it has a direct contract. Landlords are not included in this list, so fintech companies can no longer facilitate credit card payments for rent to landlords.
Why this strict measure?
The RBI has cited violations of KYC (Know Your Customer) norms and increasing instances of fraud as reasons for this decision. Previously, it was observed that proper verification was often lacking during credit card rent payments. Some people took advantage of this by sending money to their relatives’ accounts under the guise of rent, and then using that money for illegal activities. Therefore, the RBI decided that such transactions cannot be allowed without proper verification. Hence, the ban on credit card rent payments has been imposed.
The era of paying rent with credit cards is now over
Previously, tenants could directly transfer rent payments to landlords using credit cards through apps like Cred, PhonePe, and Paytm. This allowed them to earn cashback, reward points, and access credit facilities. It also simplified their monthly budgeting. However, starting in 2024, banks began cracking down on this practice. HDFC Bank started charging a 1% fee for such transactions in June 2024. ICICI Bank and SBI Cards stopped offering reward points for these transactions. SBI Cards also increased its fees and acknowledged that the growth in rent payments via credit cards was slowing down.
All apps have discontinued this feature
In March 2024, some fintech platforms discontinued the feature of paying rent with credit cards. Now, following new RBI regulations, by September 2025, all fintech companies, including Cred, have completely shut down this service. The option of paying rent with a credit card is no longer available.
