Tata Will Launch Its Own UPI App! Can It Challenge PhonePe, Paytm, Google Pay?

Once it gets the go-ahead it could launch services as soon as next month.

The Tata Group is all set to launch its own UPI app, marking its entry into a market dominated by the likes of Google Pay, PhonePe, Amazon Pay and Paytm.

NPCI Approval Pending

It is seeking approval from the National Payments Corporation of India (NPCI) to be allowed to operate as a Third Party Application Provider (TPAP).

Once it gets the go-ahead it could launch services as soon as next month.

The app will fall under the conglomerate’s digital commerce unit, Tata Digital.

Tata Digital was founded in 2019 and claims to have over 400 million users across its digital verticals.

Tie-Up With A Bank Must

It has a number of companies under its umbrella such as Bigbasket, 1MG Technologies Private Limited.

The app, which will be a non-banking payments platform such as Amazon Pay, WhatsApp Pay and Google Pay, will have to partner with a bank to make its UPI facility functional.

Tata Digital is in talks with ICICI Bank for the same. 

Superapp Coming Soon

Tata Digital is coming out with yet another app, the much awaited and hyped “superapp” containing all of Tata’s businesses on a single platform.

Called Tata Neu, the app will give users easy access to all of Tata Digital’s apps such as BigBasket, 1mg, Croma, Tata Cliq and its flight booking service in one-stop destination.

An official announcement in this regard may come on April 7, ahead of its launch during the IPL season.

Sources say that the company wants to have the UPI service ready by the time Tata Neu is launched so more UPI payments can be enabled across the superapp with ease.

Payments Market In India

In India, the lion’s share of UPI transactions take place on either Google Pay or PhonePe.

In 2021, PhonePe led the UPI numbers with INR 3.94 Lakh Cr transactions.

Google Pay came in a close second with INR 3.03 Lakh Cr transactions.

Paytm, Amazon Pay and WhatsApp Pay have relatively lower market share.

Benefits

But the dynamics could shift if Tata gets its foot in the door.. 

The public benefits should not be overlooked either.

Tata’s entry into digital payments will likely increase interoperability among UPI users and foster innovation and inclusion in the payments space.

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