FINTECH

-

CBS LINE

Volume 3.(10)

Zoho Pay set to challenge Google Pay, PhonePe, and Paytm in India’s digital payments market


The upcoming launch of Zoho Pay is set to ignite a fresh wave of intense competition within India's hyper-active digital payments ecosystem. Backed by the Chennai-based software giant Zoho Corporation, this new Unified Payments Interface (UPI) application is making a calculated and formidable entry, directly aiming to capture market share from entrenched leaders like Google Pay, PhonePe, and Paytm. The move signifies Zoho’s strategic pivot from primarily serving the business-to-business (B2B) sector towards building a comprehensive, full-stack financial services ecosystem that addresses mass consumer needs. This transition is built upon Zoho's existing technological foundation and its commitment to data privacy, providing a distinctive value proposition in a highly contested market.


Zoho Pay's central differentiating strategy revolves around creating a seamless "super-app" experience. The application will be released both as a standalone payment solution and, crucially, as a feature deeply integrated within Arattai, Zoho's homegrown, privacy-first messaging platform. This integration is designed to reduce transaction friction dramatically; users will be able to initiate, send, and receive money, as well as settle bills, directly from within their chat windows, making the financial process as intuitive as sending a message. By bundling communication and commerce, Zoho hopes to foster greater customer engagement and loyalty, a strategy that mirrors global super-app trends and aims to directly compete with similar features offered by rivals like WhatsApp Pay.


Furthermore, Zoho is strategically leveraging its established presence and credibility in the B2B space. The company already holds a Payment Aggregator license from the Reserve Bank of India and offers a suite of business payment solutions under the Zoho Payments umbrella, including proprietary Point-of-Sale (POS) devices. Zoho Pay's arrival allows the corporation to connect its strong base of business users with its new consumer base. This synergy is a powerful asset, as it facilitates immediate, integrated payment and accounting solutions for small and medium enterprises (SMEs) already utilizing Zoho’s business applications (such as Zoho Books and Zoho Payroll). This unified ecosystem approach provides a level of integration that purely consumer-focused payment apps may struggle to match.


Another key competitive angle for Zoho Pay is its strong emphasis on being a "Made in India" platform with a staunch commitment to security and user privacy. In a market where users are increasingly conscious of data handling and foreign ownership, Zoho's local origin and its corporate ethos of avoiding ad-based models offer a compelling narrative of trust and data protection. Zoho Pay is engineered with enterprise-grade security, featuring PCI DSS Level 1 compliance and advanced fraud prevention systems. This focus on a non-advertising, secure, and locally-developed alternative is a calculated move to attract users looking to transition away from global payment platforms.


While facing the substantial challenge of entering a market dominated by players with massive user bases, regulatory compliance experience, and deep-pocketed promotional campaigns, Zoho Pay's differentiated approach and robust integration capabilities pose a serious threat. Its launch is not merely an addition to the UPI ecosystem; it is a calculated attempt to redefine user experience by merging social communication and financial transactions, promising to further drive innovation and intensify the fight for supremacy in India's booming digital payments arena.


Rahul K R
Econometrics and Financial Technology

Comments

Post a Comment

Popular posts from this blog

Voices and Views

-
Image
     CBS LINE Volume 3.9  DR.D.MAVOOTHU Professor & Former Director, SMS CUSAT. Dean, Faculty of Social Sciences,CUSAT. Member of Syndicate, CUSAT. Member of Court Central University of Kerala, Kasargode 1)What does ‘business ethics’ mean in today’s world, and why it is important not just for big companies but also for ordinary people? We develop ethical principles and expand our understanding of ethics in much the same way we advance scientific knowledge—through experience, reflection, and continuous improvement. This evolving approach is known as pragmatic ethics. Over time, significant progress has been made in areas such as equal opportunity, responsible product and service practices, tax compliance, and adherence to prudential regulations. These advancements have led to positive outcomes, and I believe this progress will continue. Overall, I remain optimistic about the future of business ethics. 2)What ethical responsibilities do businesses and leaders have...
Read more

INTERVIEW WITH KERALA FINANCE MINISTER

-
Image
CBS LINE Volume 3(10) CBS Students Hold Exclusive Interview with Kerala’s Finance Minister At the Vision 2031 conference organized by the Department of Finance, Government of Kerala , students from the Centre for Budget Studies (CBS) had the opportunity to engage directly with Hon. Finance Minister Shri K.N. Balagopal in a special interview granted upon the request of the CBS delegation. The discussion focused on Kerala’s fiscal priorities and its long-term development vision.                                  CBS Students with  Hon. Finance Minister Shri K.N. Balagopal   The CBS students asked: “Given that the state has reached an advanced welfare stage, should the government focus more on revenue generation or on restructuring expenditure to ensure long-term fiscal stability?” In his response, Hon. Finance Minister Shri K.N. Balagopal remarked “In the current context, the government sho...
Read more

Monitoring GST Cuts: Role of the Anti-Profiteering Body

-
Image
  CBS LINE Volume 3.9  Anti-profiteering refers to regulatory provisions that ensure consumers benefit from tax rate cuts through proportional price reductions. With the upcoming revisions in Goods and Services Tax (GST) rates across various goods and services, the role of the Anti-Profiteering Committee becomes more crucial than ever. Established under the GST framework, the committee ensures that any reduction in tax rates or benefits of input tax credit is passed on to consumers in the form of commensurate price reductions. India has overhauled its GST structure, reducing the earlier four tax slabs (5%, 12%, 18%, 28%) into just two main rates—5% and 18% for most goods and services, while instituting a higher 40% rate for luxury items. Several essential and household items, including packaged food, daily essentials have seen their GST rates cut significantly, easing the burden on consumers. Several everyday food items will see a tax reduction from 18% to 5%.  As new GS...
Read more