Google Praises India's UPI Platform; Wants US Federal Bank to Replicate It

In a thumbs up to Indian regime'south Unified Payments Interface (UPI) scheme, Google has written to the US Federal Reserve Board detailing the successful instance of UPI-based digital payment (i.e Google Pay) in Republic of india in order to build "FedNow" – a new interbank real-fourth dimension gross settlement service (RTGS) for faster digital payments in the US.

In a letter of the alphabet written by Mark Isakowitz, Vice President, Government Affairs and Public Policy, Us and Canada, Google, the company said it worked closely with the National Payments Corporation of Republic of india (NPCI), the payment regulator past the Reserve Bank of India (RBI) to build Google Pay for the Indian market.

According to Google, UPI was thoughtfully planned and disquisitional aspects of its pattern led to its success. "Get-go, UPI is an interbank transfer organisation (there are now over 140 member banks, later on initially launching with ix participating banks). Second, it's a existent-time system. Third, it is 'open' — meaning technology companies can build applications that aid users straight manage transfers into and out of their accounts held at banks," Isakowitz wrote to Ann Misback, Secretary, Board of Governors of the Federal Reserve System.

The adoption of the system was rapid, growing from 100,000 monthly transactions to 77 1000000, to 480 million, to 1.15 billion monthly transactions in the start 4 years. "After simply three years, the annual run rate of transactions flowing through UPI is about x percent of Republic of india's GDP, including 800 million monthly transactions valued at $19 billion," alleged the company in the alphabetic character dated November seven.

The letter further added that "Google has been a successful market participant in India'southward use of UPI, and Google Pay provides one of the three leading mobile applications that use UPI, as measured past transaction volume." Google stated the use of debit, credit and pre-paid cards also nearly doubled during the aforementioned period. Fifty-fifty Caesar Sengupta, Google'due south Payments Lead has likewise been pretty vocal almost UPI's success. He recently tweeted that the right model for driving digital payments is through a partnership betwixt the banks, governments & tech companies through open and standards infrastructures like UPI.

Google Pay'due south monthly active user-base grew three times to accomplish 67 million in September this year – up from 22 million in the same calendar month terminal year.

According to a contempo Worldline report, titled "India Digital Payments Report – Q3 2019," the total volume of UPI transactions in Q3 2019 in India touched 2.vii billion, a whopping 183 percent increase from the same three-calendar month quarter a twelvemonth agone. In terms of value, UPI clocked Rs 4.6 trillion, upwards 189 percent from Q3 2018.

The number of transactions done on mobile wallets was i.04 billion, an increment of just 5 percentage over the previous year while the value of transactions in the 3-calendar month menstruation (i.e from July to September) was Rs 466 billion, an increase of 2 percentage over Q3 2018, said the Worldline written report.

Google said that after learning its lessons from the Bharat digital payments market, it has offered specific suggestions to the Fed Reserve to "support real-time low-value and high-value payments, use standardized messaging protocols with extended metadata, and provide clear standards for an Application Programming Interface (API) layer that enables licensed not-fiscal institution third parties to access and submit requests into this payment organization."

Source: https://beebom.com/google-upi-praise-replicate-us-fednow-service/

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