Google pay adds more indian banks for user payments through digital tokens
June 17, 2021 (1 month ago)
Google Pay adds more Indian banks to its list of participating banks. This move is part of the company's wider foray into the Indian financial market. Earlier, only the American division of the search giant had added more Indian banks. Now this Indian bank list has been expanded to include not just the leading players in the Indian financial market but also some lesser known names.
As a payment method, tokenization is simply using digital currencies like credit cards, debit cards and electronic checks as payment modes. A bank card contains a record of all the purchases that you have made with your debit or credit card. When you go to a store, a particular card is printed out from a data store. On payment of your purchase, the appropriate card gets issued and the details are transmitted to the payment network. Your debit card gets converted into a currency equivalent of the debit card amount.
The way the debit or credit cards are used varies across countries. There are some who use them for point of sale while others use them for debit card use only. If you want to go for a global remittance channel, it becomes imperative for a bank to have an interface for digital tokens. They are used as a mode of payment for online purchases by individuals.
As far as debit cards are concerned, the tokens are valid only while the card is in the active status. Once the card expires, the electronic token that is present on the card vanishes. Digital tokens can be created for a variety of reasons. They can be created to reward customers, to facilitate online purchases and to facilitate online remittances.
If you run a business, you will be able to take advantage of the benefits that come with using your Indian bank account for making payments. Google Pay can be integrated with the merchant account systems of Indian banks to allow the user to transact business online. The way that the merchant account system works means that there is no need for a person to have a brick and mortar business for him to open a bank debit card service.
The merchant account provider will act as the intermediary between the buyer and the seller. The system will handle all the details from the capture of the card number and the authorization of debit card to the processing of the transaction. All this is handled by the online merchant account provider. Once the card is swiped at the checkout terminal, the electronic token is sent to the designated digital tokens provider where it is converted into real tokens. The details of the transaction are sent back to the buyer's bank account. This is how Google Pay gets added to the Indian merchant accounts.
Indian banks are now trying to do more with Google. The search engine giant is expanding its services in India with many new offerings coming to the country. Now they have decided to work with Indian merchants and help them take their businesses to the next level. They are allowing users to pay using their cards in various stores and online services. All of this has brought about a major influx of money into the Indian economy because people now see Indian banks as an efficient way of making payments for goods and services they purchase.
Google Pay will also allow users to pay each other through the merchant account system. This is a major advantage that Indian banks have over the American banks. They have a virtual system for digital tokens and payments, which are much more secure than the payment networks like PayPal and WorldPay.