PhonePe, Google Pay, Paytm, and Amazon Pay are the top digital payment app players. But now Tata Group, the time-honored company with its presence from Salt to Steel, jumps into the arena of digital payment apps.
Tata is looking for permission from the National Payments Corporation of India (NPCI) to begin operating on the Unified Payments Interface (UPI) as a TPAP third-party application provider and is hoping it can go live next month.Â
In UPI applications, in particular when they are dealing with a huge amount of transactions, a company selects to work with more than one bank to divide up the load. Google Pay offers UPI through HDFC Bank, ICICI Bank, and State Bank of India.
In this regard, Tata Group, through its digital commerce division Tata Digital, is in discussion with private banker ICICI Bank to power its UPI infrastructure. The partnership of non-banking platforms like Google Pay and PhonePe, Amazon Pay is essential for banks to get access to UPI railroads.
Because of the technology-focused approach to providing better and more secure service to customers, non-banking apps play a vital role.
The main objective of digital payment apps is to reduce the cost and risk of money transactions with ease and convenience.
For example, GooglePay and PhonePe have the lion’s share of UPI transactions every month at the same time as Paytm, Amazon Pay and Facebook-owned WhatsApp Pay are the other well-known apps.
To enhance more Digital India campaign Indian government has been undertaking more than a few measures to promote and encourage digital payments in the country.
The government has aimed to empower the cashless method of digital payments because cashless payments eliminate numerous business risks like theft and robbery.
Digital payment apps
The use of digital payment apps has increased dramatically since 2016, prior only a few apps like Paytm, PhonePe, and Freecharge were only the digital payment platforms in India.
After demonetization, UPI-based digital payment platforms increased such as BHIM Axis pay, Dhani, Mobikwik, Yono by SBI, ICICI Pockets, HDFC PayZapp, and some others.
As per the ET report, 66.6 billion transitions valuing 270.7 billion are predictable to move from cash to cards and digital payments by 2024. Digital payment valued at 1 trillion by 2026. In February, Unified Payments Interface saw 4.52 billion transactions in total, according to NPCI.
Tata Unified Payments Interface – UPI
The idea of allowing more than one bank account to get into a single mobile application was developed by the National Payments Corporation of India (NPCI), which is the RBI and the IBA (Indian Bank Association).
UPI is an instant real-time payment system that assists in fast transferring the amount between two bank accounts.
The digital commerce wing of Tata Digital is in talks with ICICI Bank. For the Tata Group, access to the UPI network is a natural additional room for its ambitious online commerce play where UPI payments can improve the shopping experience.
Published By: Apoorva Wakodikar
Edited By: Subbuthai Padma
