“Only a fool learns from his own mistakes. The wise man learns from the mistakes of others.” — Otto van Bismark
In April, the Reserve Bank of India (RBI) had asked all payment system operators in the country to store data relating to their customers in India to ensure that user details remain secure in case of privacy breaches.
The development came in the wake of a data privacy scandal in which Cambridge Analytica harvested the profiles of up to 50 Mn Facebook users without their approval during the last US election. Privacy advocates in India and the Indian government have since raised concerns that a similar breach could happen in the country to target voter opinion, especially with the general election due next year.
Apple Pay In India: Plans That Hit A Roadblock
The digital payments industry in India has been growing by leaps and bounds, attracting major international companies in the space.
- A report by Credit Suisse predicted that India’s digital payments industry is expected to grow five fold to reach $1 Tn by 2023
- Digital spending by consumers is expected to grow nearly 2.5 times to $100 Bn by 2020, according to a Google-BCG report
- The Indian government’s UPI-based BHIM app also recorded a growth of 18% after crossing 19 Mn transactions in July as compared to 16 Mn in June
- UPI recorded 312 Mn transactions in August this year, a growth of 32% from 235.6 Mn transactions in July
The digital payments industry in India is led by the likes of Paytm, a decacorn in the Indian startup ecosystem that has been expanding its portfolio continuously. Another major player is the Flipkart-owned PhonePe, which claimed the top spot in UPI transactions in July.
In August, the Bengaluru-based PhonePe had also claimed that it has a 40% share of the market. It added that the platform crossed 100 Mn transactions in July and drives nearly 70% of overall merchant transactions on the UPI network.
In the case of WhatsApp Pay, the government has said that the company can’t launch its payment service here until it sets up an office and recruits a team in India. Amazon’s plan to launch its own UPI-based payment service in the country is also stuck due to concerns over the data localisation rule.
[The development was reported by ET.]