Technology giant Google announced the rebranding of its Tez digital payment app to ‘Google Pay’ at its Google for India annual event held yesterday in New Delhi. The company also announced that it is partnering with four private-sector banks to provide instant online loans to its customers. During the event, Google also announced various other initiatives such as expanding the Google Station internet access program to specific rural parts of India.
Google entered the digital payments market in India with the launch of ‘Tez’ in September 2017. After the rebranding, the UPI payments platforms of the app will not undergo any major changes. It will continue to provide all the services that are already being offered. To provide the instant loan facility to customers, Google has partnered with Federal Bank, HDFC Bank, Kotak Mahindra Bank, and ICICI Bank in India.
Many technology companies view mobile lending to be the next big thing in online financial services. Even other major service providers like Paytm and Whatsapp are also gearing up to offer similar facilities for their customers. Google also views that the app developed for India will be suitable for its worldwide model.
During the event, Caesar Sengupta, Google’s vice president for product development, stated that Tez is already being used by over 1.2 million small businesses in the country. The company also aims to bring more businesses into the fray in the near future. Google claims to have 22 million active users who use the payments app for various purposes including payment for dinners, bus rides, and other regular transactions. The company also claims that it has completed 750 million transactions since the app was launched last year.
Google aims to expand the use of its application across all sectors in the near future. The overall market is set for major expansion in the future. Credit Suisse Group has forecasted that digital transactions in India will surge to $1 trillion by the year 2023 from the current level of $200 billion.
Source: Financial Express