Google of ALPHABET Inc. launched Monday a localized payment application for India while it tries to impose itself in the rapidly growing digital payments space of country.
India's overcrowded digital payments market, which is expected to reach ten billion dollars by 2020, received a rifle shot after Prime Minister Narendra Modi banned old high value-added notes last year, forcing people to use electronic portfolios and a card payments.
A state-backed payment system, the Unified Payment Interface (UPI), has also helped banks enter the fray, forcing portfolio players to actively associate with the lenders or to adopt the platform on the world market of the most dynamic Internet services.
The Google payment app named Tez, which means fast in Hindi, uses UPI and allows users to connect their bank accounts to the service. Google has partnered with State Bank of India, the country's largest lender, Bank HDFC, ICICI Bank and Axis Bank for service.
Tez will compete, among others, with Paytm which is supported by SoftBank and Alibaba. Paytm is the largest electronic wallet in the country with more than 225 million users.
Finance Minister Arun Jaitley, who launched Tez in New Delhi, said that Google wanted to join the transformation of India into a digital economy, especially after demonetization.
"The Google team has been extremely enthusiastic because it has seen great potential, both in the economy and business in India."
Google has stepped up its efforts to deepen the Indian market. It provides free wifi in several railway stations across the country and has launched a version of its YouTube video platform that runs on a slower network.
Bharti Enterprises-backed Hike launched a portfolio linked to the UPI in its messaging platform earlier this year, while Facebook's popular instant messaging service WhatsApp also thinks about digital payment services in India, its largest market and home to 200 million of them billions more users.