India aims to catch up with China in mobile payments
India has 87 apps using its Unified Payments Interface while just two companies dominate mobile payments in China
The playing field in India’s rapidly expanding market for digital payments is poised to get more crowded as the country races to catch up with China in squeezing out the use of cash, according to the head of the South Asian nation’s payments network.
That means Indians will continue to face a bewildering array of payments apps provided by Facebook Inc., Google, Amazon.com Inc. and others, in contrast to China where two home-grown technology giants dominate the market.
“India will remain a multiple-player model where the consumer has a choice to continue to use his bank account, and for the last mile can use any app which he sees fit,” said Dilip Asbe, the chief executive officer of National Payments Corp. of India. “We give equal opportunities to both small and large players, unlike China,” he added in a recent interview.
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The so-called Unified Payments Interface managed by NPCI allows any firm to use an infrastructure linking all the nation’s banks to create new digital payments services quickly and cheaply. It was created three years ago as part of a drive to reduce the use of cash and bring more Indians into the financial system.
It currently houses 87 apps offered by Google, PayTM and other third parties, as well as many of the nation’s lenders. Facebook’s WhatsApp payment service remains in beta mode, pending government approvals.