Google has introduced the new Tez online mobile payment app in India. Google as a company knows the commercial potential of India with over 300 million internet users. Experts suggest that India is the fastest growing smartphone market in the world.
Tez Online Mobile Payment App
The Tez online mobile payment app derives the name from the word “Tez,” which means fast. The smartphone users can now connect their bank accounts to their smartphones. The Tez online mobile payment app can let them quickly transfer money to friends or make payments for a merchant in stores.
Tez Connects with Unified Payments Interface
Google understands the challenges that can hamper the app adoption rate in the country. Therefore, Tez online mobile payment app is compatible with India’s Unified Payments Interface. The country’s 19 leading banks as well the government of India back UPI.
Competition of Tez Online Mobile Payment App
The new mobile application for the Indian market will have to compete with PayTM. PayTM is backed by China’s Alibaba and Japanese Softbank. The PayTM application already has over 200 million registered users in India.
PayTM or Pay Through Mobile needs the users to first to place their money into an e-wallet. Once they have the money in the e-wallet, they can use it to make cash-free payments. PayTM is around since 2010 and several merchants already offer cashback and discounts to its users.
UPI Adoption by Banks a Major Hurdle
Google’s launch partners include 55 banks. However, only 19 have adopted the UPI. It means the other banks getting onboard need to work fast to take benefit of this opportunity. Besides Banks, Google has other launch partners too which include PVR Cinemas, RedBus Transport Network, Jet Airways, and Domino’s Pizza.
Different Ways of Making Payments Using Tez
Here are some of the ways Tez mobile app users can make payments.
- They can make payments to third-party websites which have adopted this system.
- The users can rely on the in-built merchant channels for making the payments.
- They can also make payments via cash mode which involves sending a short audio signal to a phone nearby.
- The smartphone users can also use Tez to make payments by entering the recipient’s UPI number, email address, and phone number.
Strategy to Encourage Tez Usage in India
Google is already doing its utmost to ensure fast adoption of its new mobile payment app in India. The service is currently free, but Google may add a fee to charge to the customers. Furthermore, the company has stated that all the new smartphones in India made by Panasonic, Nokia, Micromax, and Lava will have the app pre-installed on them.
Google proclaims the ease of use that it brings to the online payment ecosystem. There is an in-app scratch card through which users can get a chance to win prizes every time they spend more than 50 rupees. Furthermore, the company argues that since the users do not have to create an e-wallet, it will let users quickly transfer money without any hassle. There are reports of WhatsApp already working on a mobile payment system. Therefore, Tez may soon face direct payment competition from WhatsApp supporting in-app money transfers.
