March 23: Unified Payment Interface (UPI) had shown rapid growth after it was launched in April 2016. In December 2018, it reached a milestone of monthly transaction worth Rs 1 trillion. After this, various leading international companies including Google, Amazon, WhatsApp and Xiaomi rolled out UPI system after they understood the huge opportunities in the digital payments sector.
The latest to follow the trend is the renowned WeChat, which is backed by Tencent. The application is to launch a separate application with UPI facilities for payments.
Senior officials of Tencent held a meeting with the NPCI officials recently in a bid to to attain a license for full-fledged payments app, said a news report.
The payment app by WeChat operations will be similar to Google Pay. The reports are that the app will be named WeChat Pay just like it was rolled out in China. As of now, Tencent has partnered with banks including Axis Bank, HDFC and ICICI Bank.
The application is expected to be made available by May end or June. The source from Tencent had also disclosed that the global giant is registering an Indian company for WeChat Pay.
Tencent’s WeChat is the second famous payments application used in China. AliPay, owned by Alibaba Group leads the digital payment market in China with around 250 million users. In early 2018, Tencent’s user count crossed the ones of Alipay’s. Even though Tencent had marketed WeChat well, the application did not gain much popularity.
Tencent’s game PUBG had gained a huge fan base in India. This is when the company is planning to roll out its UPI enabled payments app WeChat Pay in India. WeChat Pay can be used as the default payment app for various items offered on PUBG app.
The leading platforms in the segment are Paytm, PhonePe and Google Pay. With the arrival of Mazon and Xiaomi into the scene, the UPI payment segment has become quite crowded. As Jio and WeChat are queuing up to launch their own payment applications, the market will become more competitive.