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Google Pay Revenue Model: Different Sources From Which It Makes Money

| Published on November 11, 2020

Google Pay: Business Model & Revenue generating strategies.

When it comes to making payments, Digital Payment has emerged as the first choice for many. Physical payments and bank visits have reduced substantially since the digital & UPI payments became more accessible.

Business Model Of Google Pay

The app was developed by Google and can be used easily by android & iOS users. It was launched on September 18, 2017. Apart from making payments, the apps also attract customers by giving coupons and offers on the vendor sites.

Google Pay Business Model

Though the concept of UPI payment existed already in India, Google Pay was the app the made it a successful model in the country. As of May 2020, the Google-managed UPI platform has reported 75 million transactional users in India.

Sundar Pichai, CEO of Alphabet & Google, has acknowledged the success Google Pay has enjoyed in the Indian market and aims at implementing the same on a global platform.

The app has mostly been beneficial for small businesses across the country who have registered themselves on Google Pay for Business which has helped them with hassle-free quick payments.

Google Pay is completely free of cost to register and link your bank accounts. No charge is applied of payments through these UPI apps. The payment option via Google Pay is available on almost all e-commerce websites. So have you ever wondered how these digital payment apps make revenue?

There are three main categories through which GPay makes revenue.

  • Bill Payments: The app enables you to pay your various bills like electricity, water, insurance, loan repayment, DTH recharge etc. For every transaction that you make through the app, it gets a commission from the company.
  • UPI Transaction: Google Pay is a UPI based digital payment app that lets you pay to any other GPay user through their registered phone number. This does not help the company to earn anything but it does give the company access to user data to work on their product further.
  • Mobile Recharge: Mobile recharge is the primary source of revenue for Google Pay. Whenever a user makes a recharge on a SIM operator from this app, GPay gets commissions for the transaction.
  • Also Read: Different Sources From Which LinkedIn Makes Money

Google Pay revenue model

Google India Digital Services Private Limited, the company that runs Google’s payments business in India, reported revenues of $156 Million (INR 1119 crores) for the year ending March 2019. This marked a 155% increase in its revenue as compared to the year before.

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