Google has moved into India as early as 2004, and now its presence in India covers social,investment, food courier, Local services and other sections, with people and businesses approaching localization.
Credit Suisse now expects the size of India’s digital payment market to increase to $1 trillion trillion from the current $200 billion by 2023. In terms of turnover, cash will still account for 70% of all transactions in India. India’s neighboring China’s digital payment market is much larger, already surpassing $5 trillion trillion.
Now that Google is “quietly” following India’s digital payment industry, Google Pay, its payment service, is also starting to lay out the local market and compete with companies such as Paytm, PhonePe, ETMoney and Mobikwik. In order to strengthen the market competitiveness,Google will provide the virtual gold purchase business through its payment app Google Pay.
According to Google’s latest notice in its terms of service, Google Pay has explicitly entered into a partnership with mmtc-pamp, India’s largest gold processing service provider, to offer gold sales, delivery and repurchase, among other services.
MMTC-PAMP is a joint venture between Swiss gold and silver precious metals company PAMP and Indian state-owned enterprise MMTC, MMTC is managed by the Government of India and mainly provides digital gold account services.
Mmtc-pamp is also known to be the virtual gold buying partner of Paytm, an Indian digital payments and e-commerce giant.
As originally expected, Google Pay will allow users to store digital gold and exchange it for physical gold delivery after exchanging it for digital gold.
In fact, digital gold purchases were first launched by Paytm, after which PhonePe, Mobikwik and ET money began rolling out similar services. In India’s last national festive season (between October and November last year), Paytm and PhonePe have made significant increases in digital gold buying deals.
Since Google pay launched its business in India in October 2017, its trading volume has been growing steadily. According to industry expert analysis, Google pay is already second only to Paytm and PhonePe in the Indian Unified Payment Interface (UPI) ecosystem, making it the third largest “payment player” in the country.
Now, Google has begun to dabble in the digital gold purchase business, and is expected to provide a range of other wealth management services in the future, such as mutual funds, SIP and so on.
In fact, after the e-commerce payment war, it is widely believed that offline payment will become the next major battlefield in India. Paytm qr code payment is an online payment service widely used by merchants, and Reliance Jio has been focusing on this area. Google’s biggest advantage is that its Indian fintech strategy does not pursue interests first, but more to create a good payment experience for consumers and enhance user stickiness.
Now, by integrating digital gold services, Google pay is deeply strengthening its competitive relationship with Paytm, PhonePe and ET money.