New Delhi: The Tata Group may soon be competing with top digital payment apps like Google Pay, Phonepe and Paytm. One of the largest conglomerates in India, the Tata Group, has been a market leader in a number of sectors from salt to steel, according to a report by Economic Times.
The report further said that the company is seeking clearance from the National Payments Corporation of India (NPCI) before launching a third-party payments service provider. The platform will use Unified Payments Interface (UPI) for the transactions.
The UPI App will be under Tata Group’s digital commerce unit, Tata Digital. It is also, reportedly, in talks with ICICI Bank to power its UPI system. For the unversed, non-banking platforms are required to partner with a bank to make its UPI facility functional.
If the volume of transactions is high through a UPI App, the companies tie-up with multiple banks to distribute the transactions. Google Pay, according to the report, has tied up with SBI, HDFC and ICICI bank to share its high transaction load.
In India, the majority of UPI transactions take place on either Google Pay or PhonePe. Other apps like Paytm, Amazon Pay and WhatsApp pay have relatively lower market share. With the Tata Group coming into the field, the dynamics might change soon.
Tata Digital was founded in 2019. It comes under Tata Sons and has a number of subsidiaries. The list includes companies like Bigbasket, 1MG Technologies Private Limited. In January, Tata Group also set up Tata Fintech, a financial marketplace for financial products.
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