According to a new report, Chinese tech giant Xiaomi is going to launch its UPI based Mi Pay digital payments application in India soon. The China-based tech giant has launched a lot of its products in India, the majority of them constituted by smartphones, TVs and much more. Now Xiaomi will also step into the digital payments sector and will compete with the likes of Paytm, BHIM, WhatsApp and PhonePe. However, there is quite a tedious process and a series of approval which the company will have to take before it launches the application in India. Right now it awaits approval from the Reserve Bank of India (RBI).
The news was first brought to light by The Hindu Business Line. As per their saying, Xiaomi is looking to jump in the bandwagon and join the others in the league of digital payments mode and like we highlighted, as of now is awaiting approval from the RBI. People aware of the matter have also said that Xiaomi is likely conducting tests and trials in the current stage before it launches the app in the market.
After the company gets the approval from the RBI, it is being said that it will partner up with many private lenders in the country to make the payments possible. As of late, Xiaomi has actively participated in investing in private lenders in the country, one of the latest being - funding round for KrazyBee and ZestMoney. From the outside, it looks as if Xiaomi will take up measures to get more private lenders onboard.
It is also noteworthy that Mi Pay payments application was already launched in China way back in September 2016. The NFC-based app was made available in the country via a partnership with China UnionPay. The application also supported cards from 20 different banks during launch, which included Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications and China Merchants Bank.
This year, the digital payments sector has been heating up as competition is increasing from all sides. The Facebook-owned messaging giant WhatsApp has also launched its Payment services in India in the previous month and in a related development, Google Tez has also rebranded itself as Google Pay. The company has also announced that it would start providing pre-approved bank loans on the Google Pay platform in the coming weeks.