Google Pay, developed by Google and launched on September 18, 2017, is compatible with Android and iOS. It has over 67 million monthly active users and conducted over 2.5 billion transactions. In addition to making payments, Google Pay also provides coupons and offers on the vendor sites to attract customers.
How does Google Pay work?
Unlike other digital wallets, Google Pay allows payments to be received directly into the bank accounts. This eliminates the need of receiving the money in wallets and then transferring into the bank account. Interestingly, you don’t have to be on the Google Pay app to receive payments. You can transfer the money even through their website. While the main function of the app is to allow money transfer transactions, it also enables users to make payments in stores that accept UPI-based transactions. To use the app, all you need to do is;
Link your bank account with Google PaySet up the UPI pin
You can register free of cost and link your bank accounts. Also, no charge is applied for payments through these UPI apps.
What is the Google Pay revenue model?
Google Pay is becoming increasingly popular in India owing to its business model. Its revenue model is based on three categories;
Mobile recharge
Mobile recharge is the basic revenue model of Google Pay.So, whenever a user recharges on any SIM operators from the app, they get a commission from that operator on every recharge.
Bill payment
The app allows you to pay for all your bills including electricity, water, insurance, DTH recharge, loan repayment, etc. So, whenever you pay any of your bills, the app takes a commission from that company.
UPI transaction
As Google Pay is a UPI-based digital payment app, it allows you to pay to another GPay user through their registered phone number. While this does not help the company earn anything, it does give the company access to user data to work on their product. According to a survey, Google Pay’s India profit for FY20 stood at INR 33 crore, a 6.5 x growth from the 2019 profit of INR 5.1Cr. Some of the features of GPay are;
Instant transactionsMoney can be sent and received directly from bank accountsIts multi-layered security -Tez shield offers multi-layered security with 24/7 protection from frauds thereby facilitating highly secure transactionsAs the money is transferred from bank accounts, all the transactions can be done through the appThe app is available in eight Indian languagesIt offers multiple payment options which means the users can make transactions via their mobile numbers or even Virtual Payment Address (VPAs)Scratch cards from Google Pay offer lucrative cashback and offers on different transactions. The cashback is credited directly to the linked bank account.The app is compatible with all the banks making it highly secure and proof of their service-quality and network reach.
Difference between Google Pay and other UPI apps
Google Pay is more customized and allows for easy transfer of money and payments in India. Additionally, it has introduced a special app- Google Pay for businesses that allow entrepreneurs to connect with their customers directly and provide them amazing deals. Companies that have their current accounts linked with Google Pay can even receive payments of up to Rs. 50,000 from the customers for free. Its cash mode feature allows you to transfer money to other Google Pay users in proximity without entering the mobile number or bank details. In addition to all these, Google Pay is set to ace the feature of pre-approved loans by providing approvals to users through the app within minutes. Also, it aims to facilitate payments at retail stores such as FBB and Big Bazaar.
