Reliance Jio, India’s largest and profitable telecom operator has entered into digital payments space. With over 370 million subscribers, the telco has introduced UPI-based payments solution in its My Jio app. With the payment service, Jio will be taking on other fintech apps like Google Pay, Paytm and PhonePe.
Interestingly, the MyJio app also allows “hassle-free payments” through Paytm, PhonePe, JioMoney, and the recently launched JioAutoPay (for recurring payments).
Currently, Reliance Jio is India’s largest telecom operator with over 370 million subscribers. Jio’s UPI payments feature, which is only available for select users now, will soon be made available to others.
It’s worth noting that WhatsApp has been in talks before Jio to launch its payments service. However, the Facebook-owned instant messenger hasn’t received a final nod from NPCI due to uncertainty over data localization and other regulatory hurdles.
Jio, which already has a wallet service under JioMoney, will be the first among telecom operators and second among payments banks to have enabled UPI payments service.
The company has integrated the UPI option in its main app MyJio, which also accommodates popular apps like JioCinema, JioCloud, and JioTV. We have verified the UPI payments facility provided by Jio and it works similarly to other players in this space.
UPI has seen a 3X growth in 2019. A total of 10.78 billion UPI transactions were carried out in the year. Year on year, it was a growth of 1.9X. If we talk about market share, Paytm currently leads UPI transactions, followed by Google Play taking the second spot and PhonePe taking the third.
And as mentioned above, enabling UPI payments in the MyJio app will trigger competition among existing players like PhonePe, Google Pay, and Paytm. Instant messaging client, WhatsApp, has also been testing UPI payments within the app. It will be interesting to see how WhatsApp convinces the regulators and the government to enable the service on the app.