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 payments service, Jio will be taking on other fintech apps like Google Pay, Paytm and PhonePe. Here is all you need to know. Also Read - Reliance Jio now largest telecom operator in India with almost 37 crore users
Reliance Jio UPI payments detailed
According to a report on Entrackr, the feature is now only available to select users. However, a wider rollout will likely happen soon. Jio already has a payment wallet service in JioMoney app. Jio is the first telecom operator to offer a mobile wallet with UPI payments, and second among payments bank service providers to offer so. Also Read - FASTag: Paytm Bank becomes largest issuer of FASTags in India
Users will see a UPI option just below the search bar in MyJio app. A virtual payment address (VPA) with UPI handle @jio will be created after the sign-up process is successful. It will require users to enter their mobile number, debit card details and link a bank account number. Users will require these to generate a UPI PIN for authenticating the transactions. Also Read - Overseas UPI payments likely to be operational soon; starting with Singapore, UAE
Once the VPA is created, you can then send and receive payments. Your VPA can be “yourmobilenumber@jio” or “yourname@jio” depending on what and how you create.
Increasing competition in the payments 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 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.