01 July 2020
Google is reportedly adding an important service to its Google Pay for the millions of merchants in India to lend them some help in the form of loans. It believes the new service will help small businesses to heal the damage caused due to pandemic in recent months.
Currently, Google is said to be working with financial institutions to offer loans to merchants from within Google Pay for Business app. Reportedly, Google added the option back in August 2018 for the customers to avail pre-approved loans through Google Pay by partnering with Federal Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and others. But it didn’t disclose anything for the merchants and small businesses then.
Its competitors like Paytm, PhonePe, and BharatPe already offer loans to millions of their merchants. Paytm alone has over 16M merchants and it offers collateral-free loans to its customers in just a few days of application.
On the contrary, Google Pay has amassed 3M merchants so far and it is yet to start the loan service. We are interested to see how the loan service of its Google Pay’s business app is going to be different from other existing players in the country.
Google has reportedly also announced the nationwide rollout of ‘Nearby Stores’ Spot o Google Pay to help businesses get discovered by customers in their locality. Earlier this feature was available to only select cities, including Chennai, Delhi, Hyderabad, Mumbai, and Pune.
Amazon is also targeting small businesses of the country but in a different way. It initiated the “Local Shops on Amazon” programme to help local shopkeepers start selling goods through the online marketplace.