Google Tez sees early success in India by Ayoub Aouad on Oct 31, 2017, 1:00 PM Advertisement
 This story was delivered to BI Intelligence "Payments Briefing" subscribers. To learn more and subscribe, please click here. During Google's Q3 2017 earnings call, the firm announced that it'd seen early adoption of Tez, its proprietary mobile payment platform, in India. Tez operates on a proprietary technology called Audio QR — the technology uses sound waves to send payment information between phones in proximity, without the need for personal information, NFC chips, or QR codes. It already has more than 7.5 million users, and has seen more than 30 million transactions since its launch in September. But it's no surprise that Google's seen early success in India. Consumers in India have been quick to adopt and use digital payments technology following demonetization. In fall 2016, the Indian government removed 86% of currency from circulation, which was a system shock to a region that relied heavily on cash. This led to a surge in digital and mobile payments, which became convenient alternatives for those seeking to complete transactions. Similar to Paytm, India's largest mobile wallet, Google likely hopes to take advantage of these changing payment habits — Paytm added 20 million users in the first month after demonetization, and over 50 million just three months later. Although Google is unlikely to see the same growth as Paytm, which was already established at the time of demonetization, it still has the ability to carve out a significant share of the market. Tez offers a suite of payment tools, including the ability to make online and in-app payments as well as peer-to-peer (P2P) payments. As an added convenience to consumers, the service doesn't require users to exchange personal information, and it avoids some of the pitfalls of NFC-, Bluetooth-, and QR-based solutions. The mobile payment platform also comes preloaded on some lower-end smartphones made by companies like Nokia and Panasonic, which gives it a distribution channel that most wallets in India don't have. European and North American countries with advanced economies often serve as bellwethers for the payments industry when it comes to introducing new and disruptive technologies. However, some of the greatest examples of digital payments disruption can be found in developing nations. In some cases, these countries not only adopt certain aspects of a digital payments ecosystem faster, but they also do so with more efficiency than their Western counterparts. The fact that digital disruption in these regions can be complex and varied, makes it difficult for the industry to devise effective strategies for international expansion — but understanding the drivers of this disruption can significantly aid payments companies. Ayoub Aouad, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on payments disruption that: - Identifies the biggest drivers that are upending the payments industries in India, East Africa, Latin America, and Australia.
- Discusses what pain points digital payment services are solving.
- Details what specific technologies and services are being introduced that consumers are embracing, which can be leveraged by companies in these regions that are ripe for disruption.
- Assesses how leaders in the space can leverage these trends to either improve their capabilities or to identify which markets may be ripe for disruption and worth exploring.
- And much more
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