Digital payment services in India are nothing new, with apps like PayTM and Google Tez (which is now Google Pay) operating for a considerable amount of time. Their usage though has grown significantly over time, especially after the demonetization period in the country. Having established itself as India’s best-selling smartphone brand, Xiaomi now aims to foray into the digital payments sector in India by launching its payment service, Mi Pay.
Xiaomi launched Mi Pay in China back in 2016 which is a service somewhat similar to Samsung Pay or Apple Pay, allowing you to keep your wallet at home and make payments using your phone either through NFC or a wireless transfer.
According to a report from Business Line, Xiaomi’s Mi Pay service might be launched soon in the Indian market and will focus on UPI services, similar to apps like BHIM and PhonePe. According to the report, Xiaomi is already testing this service and is waiting for approval from the Reserve Bank of India (RBI) in order to make this feature public. It has already started working with a leading private lender in India for system integration and is on the lookout to get more partners onboard once it receives the license from RBI.
The news comes just after Warren Buffett-owned combined Berkshire Hathaway invested a whopping $350 million in PayTM, so looks like online payment services and gateways are the next big thing. While apps like PhonePe and Google Pay have been doing well in India, apps like WhatsApp have been testing this feature for ages but have still not rolled out a final release for public use, thanks to some issues with licenses and permissions. Given that WhatsApp had to face this issue, it would certainly not be easy for Xiaomi to get that approval for its own service.