Jailey will launch Google UPI-based Tez
THE INFRASTRUCTURE OF DIGITAL PAYMENTS IN INDIA IS expected to increase three-fold by the end of 2017.
NEW DELHI: Union Finance Minister Arun Jaitley will launch Google’s Unified Payments Interface ( UPI)- based digital payment service called “Tez” on Monday, making India’s digital payment ecosystem war even more competitive.
“FM Shri @arunjaitley to launch the Google Digital Payment app ‘TEZ’ on Monday, 18th September, 2017 in the national capital,” the Finance Ministry confirmed in a tweet on Saturday.
The report of Google entering India’s fast growing digital payment ecosystem appeared in the media on Thursday, following which Google India sent out an invite for an event in New Delhi on 18 September.
“As we continue to make strides in ensuring that our products continue to serve the needs of everyone, we invite you to a press conference to share details on the launch of a new product developed grounds up for India,” the invite read.
“Tez” ( meaning fast in Hindi) may work like Android Pay.
UPI is a payment system launched by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India which facilitates the instant fund transfer between two bank accounts on the mobile platform.
The other big player to join India’s growing digital payment market is Facebookowned WhatsApp.
WhatsApp has been in the news for working towards a UPI-based interface on its platform.
According to media reports, the leading messag- ing platform is already in talks with the NPCI and a few banks to facilitate financial transactions via UPI.
According to the blog website “WABetaInfo”, WhatsApp is giving shape to its plans towards bankto-bank transfer using the UPI system.
Some mobile messaging platforms like WeChat and Hike Messenger already support UPI- based payment services.
The infrastructure of digital payments in India is expected to increase threefold by the end of 2017 with almost five million electronic point of sale ( PoS) machines, the Ministry of Electronics and IT (MeitY) has said.
“We expect that by December, the number will actually go up to five million PoS, which means that the infrastructure for digital payments is going to grow three times in the short span of one year,” MeitY Secretary Aruna Sundararajan said. According to the Ministry of Shipping, around 95% of India’s trading by volume and 70% by value are done through maritime transport. The country has 12 major and 200 notified minor and intermediate ports. Cargo traffic, which recorded 1,052 million metric tonnes (MMT) in 2015, is expected to reach 1,758 MMT by 2017. India is the 16th largest maritime country in the world, with a coastline of about 7,517 km. The Indian government has allowed foreign direct investment of up to 100% under the automatic route for port and harbour construction and maintenance projects. It has also facilitated a 10-year tax holiday to enterprises that develop, maintain and operate ports, inland waterways and inland ports. Cargo traffic handled by India’s major ports are mainly iron ore and fertilisers .The country’s major ports have registered an annual growth rate of 6.79% for FY 2016-17, as against a growth of 4.32% in FY 2015-16. The major ports recorded the highest ever capacity addition of 100.37 MT in 2016-17, thereby raising the total capacity to 1065 MT per annum, as against a capacity of 965.36 MT per annum in 2015-16. The government has taken several measures to improve operational efficiency through mechanisation, deepening the draft and speedy evacuations. Major initiatives have been taken by the government to promote the ports sector in the country. It has announced plans to execute 199 residual maritime projects worth USD 124 billion over the next two years through government funding. It has approved a proposal to replace the “Major Port Trusts Act, 1963”, with the “Major Port Authorities Bill, 2016”, which will empower major ports to perform with greater efficiency by having full autonomy in decision making and by modernising the institutional structure of major ports. It plans to undertake the development of 37 national waterways in the next three years, which would have a positive impact on the reduction of overall logistics cost. Under the Sagarmala programme, the government has envisioned a total of 189 projects for the modernisation of ports, involving an investment of USD 22 billion by the year 2035. Increasing investments and cargo traffic point towards a healthy outlook for the Indian ports sector, and providers of services such as operation and maintenance, and marine assets such as barges and dredgers will benefit largely from these investments.
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