- TATA group to compete with Google Pay, Phone Pe, And Paytm with its own UPI app.
- The Tata Group is in negotiations with private lender ICICI Bank to power its UPI infrastructure.
- The UPI App will be under Tata Group’s digital commerce unit- Tata Digital.
PhonePe, Google Pay, WhatsApp Pay, Amazon Pay, and Paytm are some of the biggest and most popular UPI-based service providers in India right now. But soon, they are likely to face stiff competition from a UPI-based app from the Tata Group. Tata Group is seeking clearance from the National Payments Corporation of India (NCPI) to offer its own United Payments Interface (UPI)-based digital payments service in the country.
UPI, meanwhile, has grown exponentially over the past years. In February this year alone, it completed 4.5 billion transactions amounting to over 8.26 lakh crore rupees ($108.3 billion) in value. Currently, there are 23 third-party apps registered under NPCI that partner with 10 Indian banks to get access to the UPI bandwagon. “The Tatas have applied to the NPCI to operate as TPAP (Third Party Application Providers) and hoping to go live next month.”
UPI race: Tatas to unveil own UPI app soon
The UPI App will be under Tata Group’s digital commerce unit- Tata Digital. It is also, reportedly, in talks with ICICI Bank to power its UPI system. For the unversed, non-banking platforms are required to partner with a bank to make its UPI facility functional. If the volume of transactions is high through a UPI App, the companies tie up with multiple banks to distribute the transactions. Google Pay, according to the report, has tied up with SBI, HDFC, and ICICI bank to share its high transaction load.
Tata Digital is expecting to make a formal announcement of the same on April 7. The new Tata payments app will surely alter the dynamics of the digital payments segment in India. Top players like PhonePe, Paytm, Google Pay, and others will soon have some stiff competition from the Tata payments app.
While the UPI platform gave a much-needed boost to digital payments in India, the Reserve Bank of India took it to another level by introducing UPI for feature phones – 123Pay, on March 8, to further take the technology to the rural areas, empowering people without smartphones to make UPI transactions.
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