How Google and Flipkart plan to counter WhatsApp Pay

Google Pay and PhonePe are adding more storefronts to their payment platforms, in a bid to beat WhatsApp Pay’s imminent entry and explore alternative money-making avenues after the government waived processing fees on Unified Payments Interface transactions.

PhonePe’s Switch and Google Pay’s Spot, their commerce layers, are tying up with hundreds of businesses in the country, enabling them to open mini digital storefronts within the payment apps where users can browse for products and services.

This will aid easy user discovery without merchants having to spend heavily on technology. PhonePe said it had more than a hundred apps live on Switch and expects that to cross 500 by the end of the year. Consumer brands that use Switch include Domino’s, Oyo Hotels and Goibibo. Google Pay started Spot with seven merchants, including MakeMyTrip and UrbanClap.

“The ambition is to grow and acquire large and small businesses,” said Hemant Gala, the head of financial services and payments at PhonePe. “There is a commercial consideration. The value on Switch is more than the cost merchants would have incurred otherwise.”

Google Pay and PhonePe are adding more storefronts to their payment platforms, in a bid to beat WhatsApp Pay’s imminent entry and explore alternative money-making avenues after the government waived processing fees on Unified Payments Interface transactions.

PhonePe’s Switch and Google Pay’s Spot, their commerce layers, are tying up with hundreds of businesses in the country, enabling them to open mini digital storefronts within the payment apps where users can browse for products and services.

This will aid easy user discovery without merchants having to spend heavily on technology. PhonePe said it had more than a hundred apps live on Switch and expects that to cross 500 by the end of the year. Consumer brands that use Switch include Domino’s, Oyo Hotels and Goibibo. Google Pay started Spot with seven merchants, including MakeMyTrip and UrbanClap.

“The ambition is to grow and acquire large and small businesses,” said Hemant Gala, the head of financial services and payments at PhonePe. “There is a commercial consideration. The value on Switch is more than the cost merchants would have incurred otherwise.”