Google Introduces Standalone Wallet App in India, Excluding Payment Integration
Google has launched a new ‘wallet’ app in India that will allow users to store a range of ticket bookings in one place. However, the app will not be linked to any payment interface, marking a departure from similar offerings by other tech companies such as Apple and Samsung.
According to Ram Papatla, general manager and India engineering lead for Android at Google, the company has no immediate plans to integrate its wallet and payments apps. This decision is likely to avoid further antitrust investigations in India, where Google is already facing multiple litigations related to its dominance in the digital market.
Papatla emphasized that the wallet app is designed to provide a seamless platform for managing bookings, making it easier for users to access their tickets in one place. Google has no current plans to merge Google Pay with Wallet or introduce payment features within the app. The company’s monetization plans are long-term and will be explored as the number of partners working with the service increases.
Industry experts believe that Google’s decision to launch Wallet as a standalone service is a strategic move to mitigate antitrust concerns. Google Wallet accepts and holds payment cards in global markets, but the company has opted to exclude this feature in India due to its ongoing legal battles.
Google’s launch of Wallet differs from its cross-industry rivals, which have developed super apps that integrate digital tokens for booked tickets and reservations, as well as support for tokenized storage of cards for payments. Apple’s Wallet, for instance, offers a unified platform to save bookings and make contactless payments. Samsung’s proprietary Samsung Wallet interface also works similarly.
Papatla, however, stated that payments will remain a separate feature for Google, and Wallet will continue to be a siloed app. Google Pay already supports a select number of credit and debit cards for contactless payments in India, but Papatla did not mention if there are any regulatory or policy challenges towards integrating a digital wallet service within Google’s payments interface.
In October 2022, the Competition Commission of India (CCI) fined Google $273 million in two tranches, partly due to allegations that the company prioritized its own apps over others on the Play Store app marketplace. Google appealed against the penalty at the National Company Law Appellate Tribunal (NCLAT), and hearings for the appeal concluded on Wednesday. A verdict on Google’s submissions is expected from NCLAT in July this year.
A senior competition lawyer who works closely with Google believes that the company is trying to avoid further controversy by keeping its wallet and payments apps separate. Integrating the two services could have led to arguments that Google is using its market power to favor companies that support its Wallet app, benefiting Google Pay indirectly. With most CCI and NCLAT issues still pending, it is not surprising that Google chose this path.
