CRED, PhonePe, Paytm Suspend Credit Card Rent Payments After RBI Rules

In a major shift for credit card users, leading fintech platforms like CRED, PhonePe, and Paytm have stopped allowing rent payments through credit cards. This move comes after new guidelines issued by the Reserve Bank of India (RBI).

Rent payments via credit cards were widely used to earn rewards and milestone benefits, making this change significant for many users.

Why Rent Payments Were Stopped

The decision follows RBI’s updated rules introduced on 15 September 2025.

According to these guidelines:

• Payment aggregators can only process payments for registered merchants
• They must have a direct contractual relationship with merchants
• Platforms cannot act as marketplaces for collecting funds

Since most landlords are not registered as merchants, fintech apps can no longer process rent payments on their behalf.

What RBI Said

RBI clarified that:

• Payment aggregators must only handle transactions for onboarded merchants
• They cannot facilitate indirect payments without proper agreements
• Marketplace-style transactions are not allowed under PA rules

This directly impacts rent payments made through apps.

Platforms Affected

The following platforms have already stopped rent payments via credit cards:

• CRED
• PhonePe
• Paytm

Other platforms like NoBroker and Housing may also follow similar steps soon.

Impact on Credit Card Users

This change affects a large number of users who relied on rent payments to:

• Earn reward points
• Achieve spending milestones
• Unlock annual fee waivers

With this option gone, users will need to adjust their spending strategy.

What Are Your Alternatives Now?

Since credit card rent payments are no longer supported, users can switch to:

• UPI payments
• Bank transfers (NEFT/IMPS/RTGS)
• Direct payments to landlords

These methods are more compliant with RBI rules but do not offer credit card rewards.

Why RBI Introduced These Rules

The main objective behind these changes is:

• Better regulation of payment aggregators
• Improved KYC compliance
• Reduced misuse of financial platforms
• Increased transparency in transactions

Final Thoughts

The suspension of credit card rent payments by CRED, Paytm, and PhonePe marks a significant change in how users manage their spending and rewards.

While this move limits reward-earning opportunities, it ensures better regulatory compliance and safer financial transactions.

Users should now explore alternative ways to maximize their credit card benefits through regular spending categories.

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