An interaction with DD Mishra, Research Director, Gartner-
1. Can we expect to see a rise in the number of UPI based payments apps?
We are seeing a trend where the number of UPI based payment apps are increasing and this is likely to continue. This is currently in line with the expectations and requirements around digital payments and we will see new features to differentiate that will be added to differentiate the app and attract a customer base.
2. Will Google’s Tez be a game changer in the mobile payment space? Will it prove to be a tough competition to mobile wallets?
It provides promising features which are in line with the requirements. It is multilingual and covers many major languages. It is too early to say whether it can be a game changer as evolution in this business is going to continue, but yes it has the capabilities to bring some disruption as of now. Moreover, Google’s information about an individual’s preferences can play a good role in enabling the business to know their preferences and provide offers with interesting options. It tries to address security concerns as well. The mobile wallet industry too is evolving and we are at an interesting stage in this competition. Eventually, UPI payments will have an upper hand if it continues to remain free and provide better security, convenience and add more value-added services. It will all depend on how fast Google can build an ecosystem of partnerships around it and continue to sustain innovations.
3. The Tez website says that there will be a separate business portal for online companies where “Businesses also get their own Business Channels on the Tez app where they can engage directly with their customers to share offers and more.” According to you, will this benefit businesses and help Tez stand out amongst its peers?
Yes, that is true at the moment, but the shelf life for any new product is very less in today’s world. Google will need to keep adding new innovative services on top of it to continue to differentiate and build an ecosystem quickly to succeed. It is expected to face competition from UPI and wallet applications who are also working on similar initiatives.