By Devangi Narang
Google made its entry into the escalating mobile payments sector in India last Monday with the launch of its mobile wallet app, Google Tez, at an event in New Delhi attended by Finance Minister Arun Jaitley. The report of Google entering India’s fast-growing digital payment ecosystem appeared in the media on 14th September, following which Google India sent out an invite for an event in New Delhi on September 18.
“As we continue to make strides in ensuring that our products continue to serve the needs of everyone, we invite you to a press conference to share details on the launch of a new product developed grounds up for India,” the invite read.
What is Google Tez?
Google Tezthe name stands for ‘fast’ in Hindiis a mobile wallet based on the Unified Payments Interface (UPI) platform built by the National Payments Corporation of India (NPCI). UPI-enabled wallets permit users to transfer money without requiring the bank account details of the recipient. The UPI ID of the recipient is used as a proxy for the account number and IFSC code, thereby simplifying the process of money transfer. Tez was rolled out under the umbrella of the Make in India initiative.
Distinctive features of Tez
The most unique feature of Tez is that it does not require money to be stored in the app to make digital payments, unlike most other wallets apps. Tez works as an extension of one’s bank account, which means that unused money remains in the bank earning interest. Each transaction is initiated by the sender entering his UPI pin with the additional security of existing phone locks.
The Google Tez interface offers language support in English, Hindi, Bengali, Kannada, Tamil, Gujarati, Marathi, and Telugu. Some other tech features like audio signal based interface for cash transaction are also noteworthy.
Another feature which sets Google Tez apart from other mobile wallets is the ‘Cash Mode’ that allows for the quick transfer of money with nearby Tez users without sharing phone numbers. Cash Mode can be used to pay as well as receive money from devices within its range. The technology works like Near-Field Communication (NFC), connecting two phones through the microphone and speaker ports.
Keeping businesses in mind
Tez also has a B2B feature called ‘Tez for Business’, which allows merchants to get their business on Tez app and interact directly with customers for transaction, offers and more. Google has got most major banks to sign up for its Tez platform, which enables businesses banking with the latter to transact using the app. Dominos, RedBus, and PVR have already joined the bandwagon in embracing Google’s latest offering. The biggest incentive to other businesses to enrol for Tez is that all payments go through to the merchant’s bank with minimal latency, and more importantly, without levying transaction fees.
Despite all the positives, the traction may have been too good to be truethe Tez app experienced technical issues on its first day. Tez’s official handles tweeted saying “Higher than expected downloads of Tez so some users may experience issues. We’re working on a fix and we’ll update asap. Thx for patience!“
Google Tez may have a long way to go
The infrastructure of digital payments in India is expected to increase three-fold by the end of 2017 with almost five million electronic point of sale (PoS) machines, the Ministry of Electronics and IT (MeitY) has said. There are at least 20 leading payment app brands in India. From telecom operators to cab aggregators to banks to VC funded independent startups all have a payment solution and they all are an app. With nearly two dozen payment and wallet apps, Google Tez may have a tough time marking its presence in the industry. Evidently, to break and capture a market which is already accustomed to long-standing credible interfaces will surely prove to be a daunting task.
Featured Image Source: Wikimedia Commons