Back in January, Google announced a major overhaul which would see its numerous, overlapping electronic wallet services merging under a single product umbrella, Google Pay. Now it’s time for Tez to join Pay.
Google had left its Google Tez product out of the merger. It had a good reason to do so; With Tez operating in India, a key region for development, Google would be the first of the tech giants to offer banking and wallet services there. Around 40 million new users come online in India every year. This rush of new users has given rise to local startups in the growing e-commerce and digital payments industries.
Moreover, being the first company to offer digital payments, would mean that Google would have a solid chance of shaking off Facebook’s competition. Facebook is already working on a money transfer solution for the Indian market and has already made strategic hires. According to Google, since launching Tez last September, over 22 million people and businesses have used Tez to make over 750 million transactions that are collectively worth over $30 billion annually.
From now on, Tez will cease to exist and will also merge under the Google Pay umbrella. Users in India will continue enjoying the special features and perks that existed within the Tez product, such as sending a gift with a Happy Birthday spark or paying a merchant directly from the bank account with no fees.
In the next couple of months, Google will work towards developing its network of businesses which accept Google Pay and will also collaborate with banks to provide instant loans. While the announcement does not elaborate on what that last part would entail, it is possible that the loan mechanism can be implemented as an account overdraft solution or a service for small and medium businesses to develop cash flow.