By Safe Investment September 18, 2025
Credit Card Rent Payment: After the new guidelines of RBI, you will no longer be able to pay rent through credit card. Fintech companies like PhonePe, Paytm, Cred and Amazon Pay have stopped this facility. Know why the facility of paying rent payment through credit card has been stopped and what options the tenants have now.
Credit Card Rent Payment: Major fintech platforms like PhonePe, Paytm, Cred, and Amazon Pay have discontinued the facility for paying rent using credit cards. This feature was very popular among renters because it provided them with considerable flexibility in rent payments. The reason for discontinuing this feature is the Reserve Bank of India's (RBI) new payment aggregator guidelines, which were released on September 15th.
Why has the credit card rent payment been discontinued?
RBI's new rules clearly state that payment aggregators (PAs) can only process transactions for merchants with whom they have direct contracts. Landlords are not considered registered merchants. Therefore, fintech platforms cannot route credit card transactions to their accounts.
Additionally, the RBI has expressed concern about KYC regulations. In fact, until now, such transactions often bypassed the entire verification process. Taking advantage of this, some people would transfer money meant for rent to a close relative's account and use it for other purposes.
How was rent payment done by credit card?
Previously, tenants had the easy option of making credit card payments through apps like Cred, PhonePe, and Paytm. The app would deduct the money from the credit card and transfer it directly to the landlord's bank account.
This method quickly gained popularity because it offered reward points and cashback, allowed for the benefit of an interest-free period, and made it easier to manage monthly cash flow.
Were banks already tightening their grip?
Yes, banks had already begun cracking down on this model even before the RBI's new circular. In June 2024, HDFC Bank began charging 1% on credit card rent payments, capped at ?3,000. ICICI Bank and SBI Cards stopped offering reward points on such transactions.
SBI Cards, meanwhile, reported in FY23 that rent payments accounted for a mid-teens share of retail spending, averaging ?20,000–?21,000 per transaction. Subsequently, the company increased the fee from ?99 to ?199 and then to ?200. The company also acknowledged that rent payments are growing more slowly than other retail spending.
Which platforms discontinued the service?
PhonePe, Paytm, Mobikwik, Freecharge, and Amazon Pay discontinued the facility for credit card rent payments in March 2024. Following the latest RBI guidelines in September 2025, other platforms, including Cred, also removed this feature completely.
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