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Alphabet’s GOOGL division Google, in partnership with VISA, has launched card tokenisation that enables secured contactless card transactions on its digital wallet platform, Google Pay.
It has expanded its bank partners offering card tokenisation including State Bank of India and Federal bank debit cards, IndusInd Bank debit and credit cards as well as HSBC credit cards.
The company earlier rolled out tokenization with Kotak Mahindra Bank, State Bank of India Cards and Axis Bank.
Google Pay will help consumers do secure, contactless transactions via near-field communication cable devices and phones at more than 2.5 million VISA merchant locations, and 1.5 million Bharat QR-enabled merchant locations.
We note that the latest move will expand the company’s reach to Indian customers and merchants. Further, it will boost its omnichannel efforts in the country.
Moreover, the move has expanded Google’s key offerings in the digital payment market in India.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Digital Payments Market in India Holds Promise
The digital payments market is significantly growing in recent times as it offers hassle-free, cashless transaction. Moreover, the ongoing pandemic has driven this market, as a greater number of people have shifted to contactless payments.
According to the India Trend Book Report 2021 by the Indian Private Equity and Venture Capital Association and Ernst & Young, the digital payments industry in India is expected to reach $95.7 trillion by 2025, progressing at a CAGR of 27% between 2020 and 2025.
Notably, Google Pay is continuously boosting the customer base by strengthening the digital payment portfolio with advanced features and strategic partnerships. Reportedly, it has 70 million users in India.
Last month, the company rolled out the international money transfer feature on the Google Pay app in collaboration with Wise and Western Union to help users in the United States transfer money via the app to users residing in India as well as Singapore.
We believe Google’s growing payment endeavors are likely to help it in capitalizing on the prospects present in the digital payment space in India.
Given the upbeat scenario in the digital payment market in India, not only Google but also other players including Paytm, Phone Pe, Bharat Pe, Amazon AMZN Pay and others are making strong efforts to bolster their presence therein.
Paytm offers new-age digital banking services with Paytm Payments Bank, Paytm Insurance, Paytm Credit Cards and Paytm Postpaid as well as other lending products to merchants and citizens. It has more than 150 million users.
In addition, Amazon is focusing on turning millions of existing accounts into avid Amazon Pay users by allowing them to make payments, shop and book flight along with event tickets. Amazon currently has more than 100 million users in India.
Meanwhile, Phone Pe has 300 million active users. The company is gaining a market edge via product launches and partnerships. Recently, it tied up with ICICI Bank to issue FASTag to those people who are users of both Phone Pe and ICICI Bank.
Nevertheless, growing endeavors of Google Pay to strengthen its services are likely to continue strengthening its competitive position against these companies.
Zacks Rank & Other Stocks to Consider
Currently, Google sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the broader technology sector include Facebook FB and Marchex MCHX. While Facebook sports a Zacks Rank #1, Marchex carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Facebook and Marchex are currently projected at 20.1% and 15%, respectively.
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