Google is changing its payment app Tez in India to Google Pay and adding instant loans
Google was launched in September last year Tez, an app for instant money transfers in India. At its annual event in the capital, New Delhi, the company announced that it Renaming the app to Google Pay.
That means it is combining its global payment services with what it has developed for India. Tez is based on UPI, a platform developed by a consortium of India-based banks that enables on-demand transactions between individual and corporate bank accounts.
The company underscored its ongoing efforts to digitize payments by announcing the upcoming support of Google Pay in more than 15,000 retail stores across the country through the Diwali festival in early November. These include Big Bazaar, FBB, and eZone.
In addition, Google Pay enables users to take out pre-approved bank loans through the app. The company says it only takes a few seconds to enter the amount you want, select the repayment terms, and receive the funds in their bank account. It has partnered with Federal, HDFC, ICICI, and the Kotak Mahindra Bank to make this possible, and the feature is slated to roll out over the next few weeks.
For people in other countries, Google Pay allows them to check in their cards when paying in brick-and-mortar stores and making online transactions. In India, Tez was about negating the need to carry cash and sharing bank account details for money transfer.
With this move, Google hopes to retain more users with its payment services, leave their wallets and purses at home, and provide tons of data about what they buy.
It’s worth noting that the UPI platform is free for users and businesses that build payment apps based on it – so Google doesn’t make any money on transactions made through Google Pay. Numerous other apps are available for this – including the Indian government’s UPI app, the Paytm digital wallet and WhatsApp’s integrated system for peer-to-peer payments (but WhatsApp is struggling to get it off the ground). So, of course, Google had to work hard to get people to use its app rather than the multitude of options out there – and this was achieved by allowing transactions without people having to share bank account information, watch and Pay utility bills, and Message to other users correctly within the app.
To make money, it will likely collect and sell data on consumer behavior to advertisers and sell certain services to companies that want to interact with customers. To this end, it is testing a special retailer experience that enables small businesses not only to receive digital payments, but also makes it easier to communicate offers and news to customers and to list themselves in Google Search and Maps.
The company said it already has 1.2 million small businesses on its platform and is now testing its merchant experience with a small number of them in New Delhi and Bangalore.
Google found that there are currently 22 million people and businesses using Google Pay in India; With 750 million transactions logged since its launch last year, it reaches a transaction value of $ 30 billion per year across the country.
With this, Google is poised to play an important role in the way the people of India spend money. Caesar Sengupta, the company’s general manager for Payments and Next Billion Users Project, noted that the next steps are to forge closer partnerships with domestic banks to offer more functionality through its app and transfer its insights from India to other countries.
To update:A Google spokesman said the company will not sell data to advertisers and companies will not charge any fee for interacting with customers.