Reliance Jio is reportedly in talks with banks like SBI, Axis Bank, ICICI Bank to integrate UPI payments in its Jio Money app. The company has a large suite of apps including Jio Cinema, Jio TV, Jio Music, Jio Money, where the latter is a digital wallet. Jio Money also hosts payments banks facility in collaboration with SBI. The telco is looking to up the game by entering the UPI segment and plans on launching the payment method early next year.
Indian market is swamped with a plethora of digital wallets struggling to grow in the domain. In the past couple of years, the consumer preference has shifted to UPI-powered payments and the major digital wallets have already adopted the functionality. Looking at the current market situation, Reliance Jio has also decided to go with the flow and eventually scale.
Waiting to Get Approval From the NPCI
According to sources, Reliance Jio has already made it half way and is now waiting to get approval from the National Payments Corporation of India (NPCI). If the proposal goes through, Jio will be rolling out its UPI-powered service at the beginning of the first quarter. Of all the Jio-subsidised apps, Jio Money is yet to scale due to the increased competition amongst digital wallet platforms. Additionally, the increasing espousal of the UPI-payments method is only making it harder. Wallets like Paytm, PhonePe started as digital wallets and eventually shifted to the UPI method. Going by a recent report, there have been nearly 482.36 million UPI transactions worth INR 74,978.27 last month. The increased popularity of the payment method has encouraged the companies to roll out their own UPI payments services.
Paytm is currently leading the UPI domain in India, accounting for over 37% of the total transactions. Paytm’s popularity chart registered a new high during the demonetization period back in 2016. The digital platform even got support from the government to incorporate transactions during the cash crisis. The company profits have only gone up since then and now it supports maximum UPI transactions in the country. The other major players are PhonePe and Googe Pay. Both of the online payment platforms contribute significantly to the UPI-powered transactions with a massive user base. To recall, Google Pay started as Tez and got renamed a few months back.
Furthermore, Facebook-owned WhatsApp is also working on getting its own UPI platform called WhatsApp Pay. However, this seems far-fetched, looking at Facebook’s vulnerability at the moment. The social media giant is struggling with privacy breach scandals and is yet to clear its name. Trusting its subsidiary with encrypted payment method sounds bizarre at the moment.
NPCI Launched UPI 2.0 to Offer Better Benefits
Although the news is old, it’s worth mentioning that UPI’s upgrade exists. NPCI launched the 2.0 version of the payments method back in August and it comes with features like Invoice, UPI Mandate, and the capability to add OD accounts, other than current and savings accounts. With UPI 2.0, users can also get information regarding the vendors by scanning the QR codes. Furthermore, the payment method also allows the user to check the invoice sent to their accounts for verification. Users can authorize payments after confirming the invoice details. The new UPI payments method is safer and offers more transparency. With things getting digital, we are expecting to register more UPI transactions and hence, new service providers will be encouraged to come up with their own platforms.