How Google Pay PhonePe Earn Billions without Charging Users
You pay from Google Pay or PhonePe every day, that too free! No charge, nor any commission. Nevertheless, these companies earned more than ₹ 5,065 crore last year. Now the question arises that when they do not sell any product, nor do they charge any fee on transactions, then where does so much money come from? So the answer is, UPI is only a part of the business of these companies. The paths of real earnings open from elsewhere.
Speaker earns crores
You must have heard that voice at the shops, “I got ₹ 100 from PhonePe”. These are the voice speakers, in fact, they are a source of strong earnings for companies. Digital payment apps like PhonePe, Paytm rent these speakers to shopkeepers, and in return for about ₹ 100 every month. In today’s era, this speaker is seen at the counter of almost every shopkeeper from the tea shop to the ration store. In such a situation, it can be guessed that only this one service earns how big.
For example, assume that more than 50 lakh shops across the country are using these voice speaker service. If you understand from mathematics, ₹ 100 × 50 lakh = ₹ 50 crore every month, ie ₹ 600 crore annually, only with this facility! These speakers not only help to give information about payment immediately, but also increase the presence of the brand and also increase confidence among customers.
Scratch cards earns thick
Now let’s talk about what we all like scratch cards. Sometimes a cashback of ₹ 10, sometimes a discount coupon. But these rewards are actually a powerful advertising tool for brands, not for users. Brands pay money to these companies so that their name, offer and promotion reaches millions of users through these scratch cards. That is, the user gets a reward, the company gets the promotion and promotion to the brand and the Google Pay, PhonePe gets huge ad revenue. This is the second big source of these app earnings.
These apps earn strong from loan
Now the third and most interesting aspects come to SAAS and Landing Services. These companies did not allow UPI to remain only a payment tool, but made it a complete solution for small businesses. Now these apps also provide services like GST, making invoice, and small loans. That is, now it has become a mini office for business, not just payment app. The biggest thing is that they do not have to spend money to connect new customers. Those who are using UPI, they also start using the rest of their products. Apart from this, now these apps have started offering services ranging from mobile recharge to electricity bill payment. In lieu of these facilities, these companies charge platform fees, which earns them extra.