Google Pay: Business Model & Revenue generating strategies.
When it comes to making payments, Digital Payment has emerged as the first choice for many. Physical payments and bank visits have reduced substantially since the digital & UPI payments became more accessible.
The app was developed by Google and can be used easily by android & iOS users. It was launched on September 18, 2017. Apart from making payments, the apps also attract customers by giving coupons and offers on the vendor sites.
Though the concept of UPI payment existed already in India, Google Pay was the app the made it a successful model in the country. As of May 2020, the Google-managed UPI platform has reported 75 million transactional users in India.
Sundar Pichai, CEO of Alphabet & Google, has acknowledged the success Google Pay has enjoyed in the Indian market and aims at implementing the same on a global platform.
The app has mostly been beneficial for small businesses across the country who have registered themselves on Google Pay for Business which has helped them for a hassle free quick payments.
Google Pay is completely free of cost to register and link your bank accounts. No charge is applied of payments through these UPI apps. The payment option via Google Pay is available on almost all e-commerce websites. So have you ever wondered how these digital payment apps make revenue?
Google India Digital Services Private Limited, the company that runs Google’s payments business in India, reported revenues of $156 Million (INR 1119 crores) for the year ending March 2019. This marked a 155% increase in its revenue as compared to the year before.