Google is looking forward to partner with Indian Banks to provide quick loans to people. The search engine giant is aiming to woo tens of millions of new internet users in India to its digital payment services.
An annual Google event was recently held in Delhi where Caesar Sengupta, the Vice-President of Google's Next Billion Users initiative and its payments said that "the move would make banking services accessible to tens of millions of Indians."
Last year, Google launched a payment app named 'Tez' which means fast in Hindi. Last week, it rebranded the app as Google Pay and said that it was partnering with four Indian banks, Federal Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank to provide instant loans to app users.
Sengupta said, "We're talking to a lot of banks, we're completely open with who we work with in terms of banking partners. He further added, "Banks bring their financial capabilities, their understanding of the user, their customers. We bring our user experience, our ability to make complex processes extremely simple and very fast."
He said that Google is open to collaboration with other Indian payment firms. "We are huge of fans interoperability ... when a product like Tez does well it creates more value in the network for everyone," he said.
According to Google, payment app Tez currently has about 22 million active monthy users. The report says, "Over 55 million people in over 300,000 towns and villages have downloaded Google’s payments app to pay for bus rides, split dinner bills with friends or pay repairmen, amounting to $30 billion in annual transactions."
"Countries like India, which are mobile first have so many people coming online for the first time just generate an incredible amount of opportunity for innovation," said Sengupta.
“We’ve learned that when we build for India, we build for the world, " he added.
With these recent announcements, Indian App Paytm might face a big challenge.