Tez, the ultrasonic mobile payment solution by Google in India
In September, Google entered into the Indian payment space by releasing it’s new application called « Tez », which means « fast » in Indian.
Google decided to attack the Asian payment market, where mobiles aren’t as developped as in our countries, where the NFC technology is the norm.
The application wants to replace traditional cash transactions by using mobile phones, in a country where approximately 300 million mobiles are used. It’s no coincidence if Google has entered this juicy market, which is predicted to reach a volume of $500 billion by 2020, according to a report from the Boston Consulting Group and Google.
To pull this off, Google used the audio QR technology, which lets you transfer money between devices without exchanging any personal information- This is made possible by using sounds between phones.
Tez links up phones with bank accounts in order to withdraw money from it and lets users do contactless payments and remote transfers.
About 50 banks have already agreed to participate in this project, as others stores and chains like Dominos Pizza or transport services that support UPI, the payment system regulated by the Reserve Bank of India.
With this strategy, Alphabet’s firm tries to, first push a basic audio technology that has never been used before for secure payments and secondly to implant an easier and more attractive way to pay.
The basic audio technology we can find on every phone presents a real simple and flexible way to pay, requiring no QR Code or bluetooth and no NFC, which is too developed for widespread use in India.
Needless to say, these are not the only motivations.
Indeed, Google decided to move to India to begin a digital transition of payments in a country where cash is still the most common way for trade. In addition to facilitating payments, Tez eliminates a traditional payment terminal and the activation of a card by VISA or MASTERCARD.
Will Google succeed in establishing itself as a great leader in a new market? ..
Only the future will tell, but it seems like a good start for the Californian firm.
The app represents more than 60% of the market share in terms of transactions since October 2017 and already accounts for more than 7 million users on Android devices with 30 million transactions.
It also appears that the name was trademarked for other Asian countries by Google, certainly announcing the future strategy of the firm on this market.