Google Pay & UPI Apps in 2024: India vs. the Rest of the World

‘Digital India’ never ceases to amaze citizens of the world, be it Direct Bank Transfer (DBT) or Unified Payment Interface (UPI). The Digital India campaign was started by the incumbent PM Narendra Modi in 2015 with the motto “Power To Empower”.

Summary

Under the ageis of PM Narendra Modi, India took a vast leap into the future. Be it ‘Make in India’ launched in 2014, ‘Vocal For Local’, DigiLocker in 2015 and more, India has built itself as an internet powerhouse since 2014.

Indian companies were already great at providing Design and development services to their clients (mostly foreign), but with the Digital India campaign, the digital prowess of India was shared with Indians.

In 2024,

• Maximum UPI usage (in India) is for buying FMCG, such as at supermarkets, fast food restaurants, pharmacies, and more.
• UPI is being used by seven foreign countries, and plans are underway to bring in 10 more countries (south-east Asia).
• Google Pay is being shut down in the USA starting June 4th, while it will keep functioning in India and Singapore.

A Few Facts

• The projected market share of digital payments in 2024 is USD 11.53 trillion (global) and USD 254.60 billion (India)

Fig.1 Digital Payments in India (2017-2028) [https://www.statista.com/outlook/fmo/digital-payments/india#transaction-value]

• The most used UPI apps in India are PhonePe (USD 5.7 billion), Google Pay (USD 4.4 billion), and Paytm (USD 1.6 billion)
• The most used digital payment apps globally are Alipay, WeChat Pay, Apple Pay, GooglePay,y and PayPal
• UPI scaled from USD 0 (2016) to USD 13 billion (Apr 2024)
• Alipay, which is on top globally, is at USD 501 billion (May 2024)

Google Pay is transforming into Google Wallet

Google will be shutting down its Google Pay services in the USA on June 4, 2024. They have advised all users in the USA to take out their remaining balances.

They are doing it because:

• 53% of Americans prefer wallet-based payments.
• Apple Pay is the most used payment method of the USA.

Google Pay’s significance

Google Pay is quite significant in both the USA and global markets, as;

• Google Pay is used in 88 countries.
• Three countries, i.e., India, the USA, and Singapore, had allowed foreign transactions via Google Pay, but now it will not be possible for the USA.
• Other unspecified countries might also be affected from June 4th onwards.

Thus, this can have global significance in terms of stock market trends.

What is UPI?

The Unified Payment Interface, or UPI, was launched in 2016 by the Government of India to provide a digital mode of payment that is made in India and is compatible with the rest of the world as well. It started with 21 banks.

It was developed by the NPCI, or National Payments Corporation of India. It facilitated payments by linking the sender and receiver’s bank accounts to their mobile numbers or virtual addresses using Third-Party Application Providers or TPAPs, like BHIM UPI, PhonePe, Google Pay, Paytm, and more.

As of April 2024, UPI is linked with 581 banks.

Uniqueness of UPI

Below are seven factors that make UPI the best kind of digital payment method. Here they are:

• Instant money transfers are available 24×7 and 365 days.
• One mobile app can connect to multiple bank accounts (a one-to-many relationship).
• Single-click payment secured via 2-factor authentication (App lock and UPI pin).
• Virtual addresses and/or mobile numbers instead of bank details make money transactions simple!
• QR codes facilitate Over-the-Counter and Scan-to-Pay payments.
• Issues like Cash-on-Delivery payments, cash shortages, exact amount payments, unforeseen circumstances like natural calamities, and health emergencies (COVID) were tackled, effortlessly!
• Start-stop bill payments, recurring payments, and dubious payments with ease.

All these factors make banking easy and accessible for all, even if they are illiterate.

Countries that use UPI

UPI just doesn’t bridge the gap between two currencies but also provides a way for the less developed countries to come on the same page with the developed countries that are using digital payment methods.

1. Bhutan

Bhutan became the first country to accept UPI in 2021. This was made possible by the partnership between NPCI International Payments Ltd. (NPIL) from India and the Royal Monetary Authority (RMA) from Bhutan. They use BHIM UPI.

2. UAE

The UAE accepted Indian UPI in August 2021, when UPI was allowed to collaborate with AANI from the UAE. Now, UPI can be used via PhonePe.

3. Nepal

Nepal has allowed UPI transactions since February 2022.

4. Oman

Oman has allowed RuPay cards and UPI since October 2022, and this was made possible by a collaboration between NPCI & NIPL (from India) and the Central Bank of Oman (CBO).

5. France

France has opened up UPI payments at Eiffel Tower since February 2024 with the help of collaboration between NIPL and Lyra.

6. Sri Lanka

Sri Lanka allowed UPI payments via QR scan codes starting on February 12, 2024.

7. Mauritius

Mauritius has provided interconnectivity between UPI and its Instant Payment System (IPS) since February 12, 2024.

The Indian government is working with 10 Southeast Asian countries to ensure UPI availability soon. They are South Korea, Japan, Vietnam, Cambodia, Taiwan, Singapore, Hong Kong, Malaysia, Thailand, and the Philippines.

How to use UPI abroad

It is quite similar to domestic usage and simple, too!

• Registration: It is done by linking a domestic mobile number with a domestic bank account via the UPI app.
• Activation: Activate UPI transfers in foreign currencies from the settings.
• Transaction: Use Scan-to-Pay and follow the steps accordingly.

NRIs and UPI

UPI has helped NRIs a lot because it enables free transactions and minimum transaction costs for the service providers. On the other hand, for example, PayPal has fixed charges and fees based on percentages.

NRIs need to do two things, i.e., link their foreign numbers with domestic accounts and be Foreign Exchange Management Act (FEMA) compliant. Then, they can send money to and from Singapore, Canada, Australia, the USA, the UK, Hong Kong, Qatar, Oman, Saudi Arabia, and the UAE.

Thus, the Indian UPI is making its voices heard and its presence felt all across the globe. This is also helping the world transact easily with India, which is slowly evolving into the world market. This would have been impossible without the Design and Development services provided by Indian software companies.

We at Wildnet Technologies have completed 2100+ development projects, including 1150+ websites and 849+ apps. Our Design and Development Services division has over 17 years of experience and provides best-in-class developmental solutions, be they websites, web apps, or mobile apps.

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