Entry of Google into the payment space of India has boosted up BHIM app, the UPI (Unified Payments Interface) platform. Tez, the UPI-based payment app, rolled out in September 2017 by Google, has covered 67% share of the market in terms of payments for the month of October 2017. As per industry sources, 7.5 Million users of Android that have installed Tez have been carrying out test payments sending tiny sums to each other. Google has been providing incentives and cash backs for referrals, which have motivated payments.
With UPI integration of WhatsApp around the edge, the “account to account” transaction platform will get an extra drive. As per the data rolled out by the NPCI (National Payments Corporation of India), UPI payments in October have reached almost 88 Million for a total worth of Rs 75,041 Crore. In August, total payments crossed almost 83 Million for a worth of Rs 71,759 Crore. Industry insiders claimed that 47.8 Million payments were reported alone on the Tez app. The 2nd highest volumes were reported at 12.5 Million by PhonePe and 7.3 Million on the BHIM app. All the remaining banks account for little more than 3 Million, which is less than 5% of the entire payments carried out.
Flipkart-owned PhonePe and Tez have been providing users huge incentives for UPI transactions in the form of cash backs. PhonePe, which for UPI has amalgamated with Yes Bank, also provides incentives for shopping on the Myntra and Flipkart platform employing the app. Facebook-controlled WhatsApp is stated to have designed an in-chat option for payment, to allow consumers to transfer money with the similar convenience as that of attaching a file or an image in a message. This might make “peer to peer” transactions much easier.
On the other hand, bankers claim that the real utility of UPI might be when sellers are committed to this platform. PhonePe has rolled out a calculator-like low-cost acceptance device to allow sellers get payments via its UPI app. Paytm will shortly roll out an option of UPI payment within its app and is operating on bringing sellers committed to the platform.