Google Pay will soon let users in India make payments with their credit and debit cards, the Economic Times reports. The app currents supports payments through the Unified Payments Interface (UPI) in India, for which users must link their banks accounts with it. According to the ET report, Google will introduce a single software development kit (SDK) for merchants and developers in India to allow users to transact over multiple platforms – including debit and credit cards – using Google Pay. Google has already launched the SDK for Paypal transactions in the US and Germany. Google Pay’s rivals in India, Paytm and Flipkart-owned PhonePe, already allow users to link their debit and credit cards to their apps. However, as a reader pointed out to MediaNama, users can open a Google Pay account only if they have a Gmail address.
The development coincides with Google’s announcement that it will soon let users in certain countries buy items on the Play Store using cash, and users in India do so through UPI. In India, the Play Store currently accepts credit and debit cards, netbanking, carrier billing, Google Play balance and gift cards, including offline vouchers, as payment methods.
Google Pay has grown quickly in India since it was launched as Google Tez in September 2017. In early April ET reported that Google Pay had taken the pole position on the UPI platform in terms of value of transactions it had processed in March. It said Google Pay clocked transactions worth Rs 43,000 crore to Rs 45,000 crore that month, while PhonePe and Paytm recorded Rs 31,000 crore to Rs 32,000 crore each. Paytm continued to lead in terms of the number of transactions, but its lead was narrow.
Petition against Google Pay in Delhi High Court
Last month the Delhi High Court asked the Reserve Bank of India how Google Pay was operating in India without its approval. The court was hearing a petition that claimed Google Pay had violated the Payments and Settlements Act as it did not figure in the RBI’s list of authorised payment system operators released on March 29. The petition also raised privacy concerns, claiming that Google Pay “has un-monitored and unauthorised access” to personal information such as Aadhaar and PAN numbers, and details of people’s financial transactions. The court issued notices to the RBI and Google India and said it would next hear the case on April 29. In response to the High Court notice, a Google spokesperson said Google Pay “operates as a technology service provider to its partner banks, to allow for payments through the UPI infrastructure, and is not part of payment processing or settlement”, the Economic Times reported.