Google and Facebook tapping into Digital Payments Market in India
After the PM Modi's Digital India initiative, the Digital payment market is growing at a fast pace. Many giant corporate companies like Google and Facebook are trying to get a share in the Indian Digital payments space with their products. According to a report developed by the investment banking firm Credit Suisse, the Indian Digital payment market will grow 5 times to USD 1 trillion by 2023. At present, the aggregate of the Digital payments in India is less than 200 million of which payment through mobile is just USD 10 million in 2018 whereas in China the mobile payments market is worth more than $5 trillion.
Recently, Google announced that it is going to rename its UPI enabled Tez app to Google pay with new feature added to it. The app will soon be able to provide a loan to users from HDFC Bank, ICICI Bank, Federal Bank, and Kotak Mahindra Bank. Commenting on it, Google's general manager, Caesear Sengupta said, "In the coming weeks, these customers will be able to use Google pay to take out a customized loan amount from their bank, with minimal paperwork, and once they accept the bank's terms, the money is deposited securely and instantly by their bank, into their bank account".
As per Google, the app has 22 million monthly active users who have made over 750 million annual transactions with an average annual transaction of 2 lakh crore. It has also increased the UPI transactions in India by 8 times, as per the report.
After Google, Facebook with its Whatsapp messenger app is also working on digital payment service based on UPI that will allow users to transfer money from their bank account to the bank accounts of their contact list. Whatsapp digital payment service is still on trial due to the security reasons and a beta version of it has been launched for a few users only.
With the increasing popularity of the digital payment apps like BHIM, Google Pay, Paytm and many more, UPI digital transactions have also increased. According to a report provided by the Reserve Bank of India, the value of total UPI transactions in the country has increased to Rs 15,540 crore in Jan 2018 from Rs. 90 crore in Nov 2016. It was Rs 700 crore in the December 2016 which increased to Rs 13,140 crore within a year.