U.S. Tech Firms Apply for Payment System Licenses in India

Tech giants Facebook, Google, and Amazon have bid on payment licensing services for the massive digital payment market in India.

The India payment market, which has dealt mostly in cash, has begun to shift in favor of digital payment systems, as India’s mobile phone market approaches 1 billion users.

Competing for the bid will be Amazon, Visa, and ICICI Bank of India, who will be going up against Facebook, Google, and Reliance Ltd.. Google and Facebook have both pledged over $10 billion to Reliance in digital service units.

Whoever wins this round will then go to face off against the National Payments Corporation of India, a financial group backed by more than 50 India banks.

The National Payment Corporation introduced their Unified Payment Interface (UPI) back in 2016, which allowed users to link their phone numbers to their bank account.

The digital payment market in India is poised to boom, with investors and bankers estimating that Indian shoppers could be making $1 trillion in electronic payments by 2023.

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