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The internet giant Google has announced a relaunch of the Tez app with a new name as Google Pay and introduces instant loans from some banks. Read more.
Google launched Tez, its app for instant transfer of money, in India last year. With its first anniversary coming up in September, the Internet giant has now announced a relaunch of the app with a new name – Google Pay – and taking it to other markets.
What is Tez?
Tez, the app originally launched by Google, facilitates transactions between individuals and businesses using their personal bank accounts. The app is extensively used to pay utility bills, bus fares, and for other services.
What is Google Pay?
Simply put, Google Pay is Tez with a new name. The new app will presumably expand to more than 15,000 retail stores in India by mid-November. Some of the big names include FBB, eZone, and Big Bazaar.
The app will include a new feature that enables users to take pre-approved loans instantly from leading banks. Banks such as HDFC, Kotak Mahindra, and ICICI have partnered with Google to facilitate this feature.
How does it work?
When the new app rolls out, eligible users will be sent a notification (via the app) that they are eligible for a loan. They can then decide the amount of loan and the period of repayment. They also need to review the terms of the loan. Once accepted, the money would be instantly deposited into the users’ accounts.
In countries other than India, people can pay both online as well as at brick-and-mortar stores, in keeping with Tez’s tradition of doing away with the need for cash or sharing of bank details.
How will it impact you?
With Google Pay, there will no longer be any need to carry cash or cards – or even check for sufficient balance in your account. If you have a good credit rating and are eligible for a loan, you can instantly take one to make your purchase. On the flip side, the app encourages a ‘loan culture’ that is alien to India.
What’s in it for Google?
Google hopes to encourage more users to make online payments. Not only will the app enable easy loans and payments, it will also provide Google reams of data about consumer behaviour. Also worth mentioning is the fact that Google does not stand to gain financially from the app – the platform is free for users and other payment gateways.
Google has once again proved itself a leader in innovative technology by launching a payment gateway that allows transactions without requiring the sharing of bank account details. While apps such as WhatsApp are scrambling to take their software off the ground, Google is offering the service free to both users and entities that want to build atop
Whether Google will attempt to make money by harvesting the bucketload of data it collects via the app remains to be seen – though this has been refuted by a spokesperson from the company. Meanwhile, the grapevine has it that a dedicated merchant app that allows businesses to communicate with customers and make offers is in the pipeline.