From neighbourhood shop to e-commerce platforms, cashless payments via QR codes and a few clicks have become a part of everyday life across Indian cities. Google Pay currently dominates the online payments space in India with a 33 per cent market share, and allows users to pay from bank accounts or debit cards linked to their phone numbers.
It has now decided to move a step forward by joining hands with the National Payments Corporation of India, to process credit card payments through the app.
Surpassing Mastercard and Visa
Through the new partnership, Google Pay will facilitate UPI payments made through RuPay credit cards, through its app.
RuPay has become the first of its kind credit card to be onboarded by Google Pay, while Visa and Mastercard still haven't been accepted on UPI-based platforms.
With this, instead of simply paying from their available balance, consumers can also access quick credit via payment apps.
This will allow them to spend more and increase sales as well as cashflow in the economy.
NPCI relying on partnerships
NPCI's collaboration to add Rupay credit cards to Google Pay, comes after similar deals with BHIM, PhonePe, Paytm and Mobikwik.
Apart from public sector Punjab National Bank, Indian Bank, and Union Bank of India, HDFC and Axis Bank are also linking Rupay credit cards to UPI.
A global card payment network launched in 2012, RuPay provides complete interoperability across channels for payments.
Rupay quickly gained acceptance and went on to account for more than 60 per cent of all credit cards issued by 2020.
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