How Google Pay makes money ?

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How Google Pay makes money?

 


Google Pay is a digital wallet platform and online payment system developed by Google to power in-app and tap to pay purchases on mobile devices.

Google Pay enables its users to make payments with their android devices (phones, tablets or watches), the users in the United States can also use it in iOS devices but with limited functionality.

In addition to this, the service also supports passes such as coupons, boarding passes student ID cards, event tickets, movie tickets, public transportation tickets, store cards and loyalty cards.

It can be used for online payments, in-app purchases, and contactless payments in stores and even for peer to peer money sending.

Whether someone is browsing for a new pair of sneakers online or buying your morning coffee, Google Pay can do all the heavy lifting for them.

Google Pay currently does not earn any money from Google.

However, Google Pay has several global revenue-making opportunities that can after several years make an estimated $4.5 billion a year.

This revenue might be both from transaction fees from banks or merchants which is $4.1 billion and also from ads and product offers within Google Pay which is $0.4 billion.

Google Pay has reported annual revenue of 1,501 Cr. and net profits of 32.87 Cr. for the financial year 2020.

UPI transactions are free. Registration and bank account linking are also free, and then what are the exact sources through which it's making money?

There are mainly three revenue sources -

1. UPI Transactions

Google Pay doesn't earn any direct revenue from the UPI transaction.

But user’s data helps the company to make further products more efficiently, which can generate great revenue for the company.

2. Bill Payments

We can pay different kinds of bills like electricity bills, DTH recharges, loan payments etc using Google Pay.

Google Pay gets a commission from the companies for these transactions.

3. Mobile Recharges

It is the primary revenue source of Google Pay.

Whenever we make a recharge on a SIM operator using Google Pay, it gets commissions from the transaction.

The free UPI transaction service usually attracts more users.

Then



Those users will pay bills and recharge their mobile app, which will generate revenue for Google Pay.






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