Google and Amazon have received permission to expand the scope of their online payment systems in India.
The Central Bank of India has published a list of 32 companies that have permission to act as aggregators of online payments in this country, among them Google Pay and Amazon Pay.
Firms from the regulator’s list can connect to merchants and accept payments on their behalf. This permit allows the two largest technology giants to develop their payment businesses in one of the most populous countries.
The field of digital payments in India is showing rapid growth. According to the results of last year, the volume of payments in this category in the Indian financial market increased by 33% compared to the indicator of 2021. The Ministry of Economy and Information Technology of India reported that in 2022 the total amount of digital transactions amounted to $ 74 billion. A year earlier, this figure was equal to 55 billion dollars.
India is also paving the way for interoperable payments between suppliers. This is the right decision since payments can become ubiquitous only if the relevant systems of the country are interconnected and, as a result of close interaction, will optimize the process of direct transfer of funds.
The National Payment Corporation of India (NPCI) has expanded access to the Unified Payment Interface (UPI) for non-resident Indians in several countries, including Singapore, the UK, Australia, Canada, and the USA. In the ecosystem, there is customer demand for scaling up the use of UPI.
Other companies that have received approval from the central bank of India include Reliance, Zomato, and Razorpay, which suspended the connection of online sellers in December, pending final approval of their license for the payment aggregator.
PhonePe, a Walmart-backed platform that was valued at $12 billion this week, has also filed and is under review. This was announced by the Central Bank of India.
As we have reported earlier, India’s Central Bank Calls for Outright Ban on Crypto.