The Indian digital payments space is set to witness the entry of another major competitor. India’s second largest mobile manufacturer is gearing up to introduce its new payment service called Xiaomi Mi Pay.
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The corporate already succeeded in conducting trials and testing of the UPI service and is awaiting RBI approval for the launch. The company has tied up with a leading private lender in India for system integration, and is looking at more tie-ups once it receives the licence from the banking regulator, says a report of BusinessLine
Mi pay aims to diminish the use of debit and credit cards while making purchases. At present, the service is affiliated to 20 banks in China and soon to be entered in the Indian market which competes for the likes of Paytm, Google Tez, PhonePe, PayU and many more.
Alibaba was the first company to have a deep interest in the mobile payments segment. Alibaba has investments in mobile wallet company Paytm, in which billionaire investor Warren Buffett-led Berkshire Hathaway has pumped in ₹2,500 crore. while the Xiaomi also entered in the same, Mi Pay was introduced in 2016 in China in collaboration with China UnionPay to provide contactless payments service.
However, in India, it will only provide UPI service and compete with existing players such as Google Tez (now rebranded as Google Pay), Phone Pe, PayU and WhatsApp, among others, that are doing well and are seeing plenty of growth,that are banking on the growth of affordable smartphones, internet penetration and cheaper broadband.
So, it will be interesting to see how well Xiaomi will be able to cope in the competitive industry. That said, the company still is India’s second largest smartphone company and might even be able to advantage through it.
The details regarding its launch are yet to revealed. But it is expected to unveil soon. To know more updates on this stay tuned we will get you more.
source: BGR