Tez, Google’s bills app for India that is constructed on most sensible of the nation’s Unified Payments Interface (UPI), used to be introduced in September remaining 12 months. By early December – rather less than 3 months after the release – the app had clocked 12 million customers and 140 million transactions.
Those are spectacular numbers, even though the authorities subsidized UPI app BHIM, which additionally introduced remaining 12 months, clocked 10 million customers at a miles quicker charge – inside of 10 days. In phrases of the quantity of transactions, alternatively, Tez has totally blown previous its festival.
When Gadgets 360 reached out to Google this week, the corporate reiterated that Tez has noticed over 140 million transactions in the kind of 3 months because it introduced on September 18. In distinction, consistent with figures from the National Payments Corporation of India – the entity that operates the bills interface UPI – the government-based BHIM app has noticed as regards to 62 million transactions over 12 months, with most effective nine million transactions in December.
Why the massive distinction in the quantity of transactions, regardless of the two apps having an identical consumer numbers? Is Google Tez any such sport changer? In an previous dialog at the time of the Tez release, DD Mishra, Research Director, Gartner had stated that Tez had the doable to take action. “It is too early to say whether it can be a game changer, but yes it has the capabilities to bring some disruption,” he had stated.
Google, on its section, credit the luck of the Tez app to its “simplicity”.
“People prefer simple, safe and trusted apps that are widely used. We’re happy that people are recommending Tez to their friends and family because they like the simplicity of the product,” an organization spokesperson instructed Gadgets 360.
However, even though there is little or no information that is publicly to be had, the feeling amongst many is that Tez’s numbers are made conceivable because of an excessively beneficiant cashback coverage. Pay any person the use of Tez, and you win one thing that the corporate calls a “scratch card”. These digital tokens can also be checked like lottery playing cards, and you stand to make a good quantity of cash on each and every scratch card. There are limits in position – on what number of scratch playing cards you can obtain, and there is a likelihood that you can get not anything for the transaction – however this is not essentially a disincentive.
To see why, you’ll check out the international of online game design. A fairly fresh phenomenon there may be “loot boxes”, the place you get a praise, however you do not know what is inside of. As it seems, this faucets into the similar sort of addictive psychology as playing – even though it’s possible you’ll see “better luck next time” extra frequently than now not, in the event you listen about the most sensible tier rewards frequently sufficient, that is sufficient to stay you hooked.
This is one thing that you just see even in the Google Play critiques for the Tez app – a vital quantity are as regards to the rewards, with one in particular annoyed consumer commenting, “This app should be named as better luck next time,” even though he did charge it 4 stars, so possibly the enjoy wasn’t that dangerous general?
In the Gadgets 360 newsroom itself, we discovered ourselves being confused by means of colleagues to join Tez, although they might confirmed no passion in UPI apps ahead of – and the reason why, it became out, used to be rewards. Another good friend, a journalist in Delhi, additionally instructed us how he is gained Rs. 1,000 in a unmarried week thru rewards on the Tez app.
Sushant Mathur is a faculty going scholar in Bengaluru, who has been incessantly changing circle of relatives and pals to Tez from different modes of fee. His reason why is modest. “Every time someone signs up with my referral code and then spends Rs. 50, I get Rs. 50 too,” he stated. “It’s like free money!” The indexed praise for referrals is Rs. 51, however we did not right kind him. Instead, we requested Mathur about the scratch playing cards, and he used to be extra dismissive. “That’s just better luck next time all the time,” he stated.
“Though I got Rs. 150 on that once also,” he added after a second’s mirrored image.
One former Google worker, who now works for a competitor and asked to not be named, instructed us that she and all of her colleagues have switched to Tez for from Paytm, the largest cellular pockets operator in India that has raised finances from Alibaba and Softbank, amongst others .
“Earlier we used to send money via Paytm, you know, for things like someone ordered lunch and you want to pay your share, or you want to contribute to a birthday present kind of thing,” she defined. “So earlier we all just used Paytm because we anyway had money in that for Uber right? But with Tez you know you get the rewards and it’s also a really well made app so it’s easy to use.”
This used to be a commonplace sentiment among all the other people we spoke to about Tez; the design and ease of use had been frequently discussed, however now not just about as frequently as rewards and money backs. It’s no wonder regardless that that Google downplays the position those incentives have performed in Tez’s extraordinary expansion in India.
“Instant cash back for referral is a one-time token amount for a successful installation and transaction,” the corporate said. “Once installed people go on to use Tez to pay for variety of use cases. The growing UPI merchant base had been growing steadily in India, and there are more than 525,000-plus merchants on Tez. They’re using it to take payments.”
Analysts, alternatively, trust the in style sentiment. “There are no specific numbers as RBI doesn’t provide a breakup by the sources, but going by the secondary domain, Google Tez has 12 million users,” says Hanish Bhatia, Senior Analyst with Counterpoint Research. “Our data on this is very qualitative, but it [rewards] played a significant role in the growth. Cash back as well as the other offering [referrals]. For many people it is the primary reason for getting the app.”
However, he additionally consents with Google’s overview that folks do stay the use of the app afterwards.
“One thing that we have observed [through interviews] is that the value of transactions on Google Tez is comparatively high. Typically the average is something like $5 [roughly Rs. 320], but it appears higher for Tez.”
Google refused to expose the quantity of cash it has spent on money backs and different incentives in selling Tez utilization. “We do not share details of our marketing and promotional budgets,” the corporate stated.
Paytm, which just lately added UPI strengthen to its app, additionally clocked some spectacular numbers in the first month, subsidized by means of incentives of its personal. Competitors say that this quantity is inflated by means of Paytm counting the money again as an extra transaction, successfully doubling the quantity of transactions on its platform each and every time a cashback is obtainable to its customers. Google says it does now not rely money backs or rewards in the 140 million transactions it has reported.
In the two months ahead of Paytm added UPI strengthen to its app in December remaining 12 months, Google’s Tez accounted for 70 % of transactions on the BHIM UPI platform. Whether it might maintain this type of expansion in the face of higher festival continues to be noticed.