Google Pay made a revenue of ₹1467 cr, with a net profit of ₹53 cr in FY21

GPay made a revenue of ₹1467 cr, with a net profit of ₹53 cr in FY21.

As you know GPay cannot charge anything on UPI transactions, then how does GPay make money?

Let’s decode!

UPI has emerged as the most preferred digital payment mode with a market share of 64% in volume and 50% in terms of value.

And, Google Pay has the highest UPI market share of about 43%.

Google Pay, which was formerly launched as Tez, does not charge the customer a single penny.

Receiving and sending money on GPay is absolutely free.

The business model of Google Pay is split into the following 4 categories!

1) Mobile recharges

The basic revenue model of GPay is mobile recharges.

Whenever a user recharges for any SIM operators from this app, GPay gets a commission from that operator on every recharge.

2) Bill Payments

GPay allows users to pay their various bills such as electricity, DTH recharge, water, insurance, loan repayment, postpaid bill, and so on.

So, whenever you make a bill payment, GPay takes a commission from the service provider.

3) Brand Placement fee

Another revenue medium for GPay is Brand placements.

The discount coupons you get by making transactions on GPay, such as from Domino’s, Zomato, Lenskart, etc,

Gpay charges a listing fee from such brands.

4) Data

But GPay really doesn’t make anything from UPI payments, think again!

GPay gains access to critical data.

It analyses your transaction data and makes new products.

It also offers you products & services based on your data, and charges commission on it.

If you found this business case study interesting, then follow me @SejalSud for more such content!

Follow: @SejalSud

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