Rent payments using PhonePe, Paytm, and credit cards will no longer be available; the feature has been discontinued following RBI regulations.

House Rent: Paying house rent using fintech apps like PhonePe, Paytm, Cred, and Amazon Pay will no longer be possible. This is due to the Reserve Bank of India's (RBI) new regulations, which have been implemented to tighten control over payment services.

What do the new RBI regulations say?

Under the new RBI regulations, payment aggregators and payment gateways can now only transact with merchants with whom they have direct contact or whose full KYC has been completed. Landlords are often not registered merchants, so their rent cannot be sent directly using credit cards through fintech apps.

Previously, people could transfer money to friends' or relatives' accounts without complete KYC and earn reward points or cashback. However, the RBI deemed this illegal and risky, so this feature has been discontinued.

Impact on Banks and Fintech Companies

In June 2024, HDFC Bank implemented a 1% additional fee on credit card rent payments, while ICICI and SBI Cards stopped offering reward points on such payments. SBI Cards stated that rent payments accounted for a significant portion of their total retail spend, so their fees and EPS could be under pressure. This is a major blow to Fintech companies, as rent payments were the fastest-growing segment on their platforms, and they will now have to find new offerings and business models.

Ban on Credit Card Rent Payments

In March 2024, PhonePe, Paytm, MobiKwik, Freecharge, and Amazon Pay discontinued credit card rent payments. Following the implementation of new RBI regulations in September 2025, all platforms, including Cred, removed this feature entirely. Customers will no longer be able to pay rent with credit cards through fintech apps, nor will they be able to earn reward points or benefit from a no-interest period. This change could also impact banks' earnings and EPS.

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