Google Pay has been a primary payment method for many people now. If you make payments online, you must have used Google Pay sometime in your life.
On the one hand, where its competitors like PhonePe charge a ₹1-2 fee and PayTM charges ₹1-6 on every transaction, Google Pay still manages to be free of cost.
The last few months saw Google Pay growing at an exponential rate. With over 2 billion transactions, Google Pay became India’s second most used and popular payment platform. On the other hand, PhonePe and PayTM saw enough losses to make them reconsider their game plan.
So how exactly does Google Pay manage to stay in the game despite providing its services for free?
Well, Google Pay has a few methods of making money.
Commissions: While Google Pay doesn’t make money on regular transactions, it still charges you for utility bills, DTH recharges, fast tags, electricity, etc.
Mobile recharges: The way commissions are being charged on regular bills, your mobile recharges invite commissions too, allowing Google Pay to charge a little from the telecom operator.
Reimbursements: All those scratch cards and discount coupons you receive are a result of partnerships that Google Pay has signed up with different companies. These companies pay Google Pay a certain fee to encourage people to sign up for their products/services, giving people discount codes to get started, all through Google Pay.
Rather than acting as a bank, Google Pay is aiming to become the biggest platform for facilitating payments and allowing you to make all your payments from a single place.
Most importantly, Google Pay is also leaning a little more towards crypto payments, something which makes it one of a kind. A unique trait that could be realized here is that Google Pay is also aiming to step into all kinds of financial sectors and help your bridge the gap between you and a kind of payment by being a payment option in the middle.
With zero transaction fees, a fast payment system, and a great interface, Google Pay does seem to have a very promising future.
Till next time…