In an interesting move, Chinese electronics giant, Xiaomi is set to launch its own digital payments solution in India. Dubbed as Mi Pay, work on the payments platform is completed and the Chinese major is awaiting regulatory clearance from the RBI.
Mi Pay service: Launching in India?
The Chinese company is only one of many multinational organizations that are looking to enter and explore the Indian digital payments segment. The Indian digital payments market is quite a large untapped one with plenty of potential for growth and Xiaomi is looking to leverage its popularity as the country’s second-largest smartphone maker by entering into the digital payments space.
Furthermore, Xiaomi has already aligned its digital payment platform along with India’s UPI (unified payments interface) service and several tests have been run on the network. According to sources, the tech giant has also tied up with an Indian Private lender that is a market leader for system integration and is also on the lookout for more tie-ups as soon as it receives regulatory clearance and license to operate in India from the RBI (Reserve Bank of India).
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Growing Interest in the Indian Payments market:
With a large majority of Indians still unbanked and with the rising popularity and increasing density & penetration of smartphones in India, digital payment solution is the obvious step forward for many private companies. In fact, Xiaomi isn’t even the first Chinese company to enter the Indian digital payment industry. Chinese multinational conglomerate Alibaba Holdings has a substantial stake in the Indian mobile wallet provider Paytm.
In fact, Paytm has just recently received an investment of Rs. 2,500 crores from Berkshire Hathaway, which is owned by the Oracle of Omaha billionaire investor Warren Buffet. This rising popularity in India is largely owing to the potential for growth in the country and the rate of adoption of smartphones in the country.
Xiaomi did not provide an official communication or a comment on this matter and understandably so, as the entire plan is subject to regulatory clearance. However, the company is no stranger to the digital payments industry as it has its own line of payments system – Mi Pay working in China since 2016.
It has collaborated with China UnionPay in order to provide this peer to peer payments service (also dubbed NFC technology) with the help of debit cards of users. As of now, more than 20 different banks’ debit cards are compatible with the wallet and can be used on the platform.
Xiaomi’s India plans and competition:
The scenario in India is different, however with Mi Pay, as the company isn’t going to integrate its services with debit or credit cards. Instead, the wallet service will operate only through the UPI network, which is largely being pushed by the Government of India to several digital payment service providers.
Moreover, with the rise of affordable smartphones, low-cost broadband as well increased amount of 3G / 4G mobile internet penetration in the country, the company is looking to take advantage of this with its Mi Pay wallet. The company has plenty of competition in India with several existing services and new ones emerging.
On a local level Paytm and Mobikwik are two of the most popular digital wallet providers. Apart from this Phone Pe is another service that is gaining popularity. Multinational companies have also set up their own payment networks in the form of Amazon Pay, Tez (now Google Pay) and PayU. Samsung Pay and Apple Pay are also likely to launch its services in the country. Facebook-owned WhatsApp pay is also in the offing but is awaiting regulatory clearance.
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The post Xiaomi Mi Pay Set to Launch Soon in India to Take on Google Pay, Flipkart’s PhonePe in Digital Payments appeared first on MySmartPrice.
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