Tata Group is awaiting clearance from the National Payments Corporation of India (NPCI) to launch its own payment service provider which will utilize UPI for transactions.
India’s leading conglomerate, the Tata Group is supposedly venturing into the country’s flourishing digital payments industry. The business mega-giant is seeking clearance from the National Payments Corporation of India (NPCI) before launching its payments service provider. The app will use Unified Payments Interface (UPI) for transactions, as per a report by Economic Times.
Tata’s digital commerce unit, Tata Digital will keep an eye on the app’s proceedings which the Tatas are hoping to launch next month. Tata Digital is also in talks with ICICI Bank to mobilise its UPI infrastructure. For the uninitiated, in India, non-banking entities are obliged to partner with a bank to make their UPI functional.
This allows the UPI app to distribute the transaction overload with the respective bank ensuring optimal performance. Google Pay reportedly has ties with SBI, HDFC and ICICI bank to share its high transaction load. Tata’s introduction into the digital payments industry means that it will go toe-to-toe with leading players like Google Pay, PhonePe, Amazon Pay, Paytm, and others.
This move will likely increase the synergy among UPI users and foster innovation and inclusion in the digital payments sector. The UPI industry has grown massively over the past few years. In February 2022 alone, transactions worth over 8.26 lakh crore rupees ($108.3 billion) were processed.
As of now, there are 23 third-party apps partnering with 10 Indian banks registered under the NCPI that power the digital payments industry in India.