Ever wondered how does google makes money from google pay? In this short article, I will figure out the points of how does Google earns a handsome amount with their popular Google pay app.
Google pay is a UPI-based app by which users can pay money from their mobile phones to other G-Pay users or other users running the UPI payment facility on their mobiles.
Having 1100.37 million mobile phone customers in the country, India is the second-largest telecommunications market.So an app like Google pay is hugely popular in India. The UPI payment is not new in India but with the advent of Google pay, digital payment has been grown tremendously
The app was launched in India in the year 2017 as a free app to use and anyone having a smartphone can use it both on Android and iOS.But being a free have how does Google revenue from Google pay you must have wondered sometime.
The answer is yes, Google is running a very successful business model from Google Pay. They are mainly generating money from Google pay in 3 ways mentioned below:
1. Bill Pay : Like other UPI payment apps, Google Pay earns a cut as a commission when you use Google Pay to pay your various bills like electric bill, broadband bill, LPG gas payment, water, insurance, loan repayment, DTH recharge etc. This is a very straightforward revenue model.
2. On UPI Transactions: As Google Pay is a UPI payment app, when you install Google pay, Google does access user data to an extent as an aggregated form which enables them to make their product better.
3. On Mobile Recharges: Mobile recharge is the main source of revenue for Google Pay. Whenever you make a recharge on a SIM operator from this app, GPay gets a commission for the specific recharge/transaction.
Google India Digital Services Private Limited, reported revenues of $156 Million (INR 1119 crores) for the year ending March 2019. This marked a 155% YOY revenue increase as compared to the previous year.
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