Google Pay Puts Domestic Payments First, Pauses Cross-Border Focus

Google Pay is currently steering clear of cross-border payments and remittances, choosing instead to double down on making domestic digital transactions faster, simpler, and safer. Kunal Rana, Director of Merchant Services at Google Pay, shared this strategic direction on Friday at the FinInvest conference.

Rana highlighted that transaction success rates are a top priority, claiming the platform likely leads the industry in this metric. The focus remains on ensuring payments are processed quickly and securely, with a strong emphasis on user safety.

To bolster security, Google Pay has implemented alerts that notify users in their local language if suspicious activity is detected on the recipient's account. This is part of a broader effort to build trust, as Rana stressed that even a minuscule level of fraud can erode user confidence permanently.

He acknowledged that fraud prevention is a continuous challenge, describing it as a "catch-up game" where new fraudulent methods emerge as existing ones are addressed. Over the past few years, Google Pay claims to have prevented scams and frauds worth over Rs 13,000 crore.

Beyond security, Rana discussed the potential of artificial intelligence (AI) to empower micro, small, and medium enterprises (MSMEs). He noted that AI can give small merchants capabilities traditionally reserved for larger corporations, such as using customer feedback to make informed decisions about inventory and shop management.

On the topic of merchant credit, Rana said progress is being made but acknowledged there is significant room for growth. Regarding the current zero Merchant Discount Rate (MDR) regime for UPI, he stated that Google Pay will comply with decisions made by the government and regulatory bodies like NPCI.

Rana concluded by praising the digital payments infrastructure built by banks and fintechs, noting that it has positioned India as a leading fintech technology provider and a source of inspiration for other nations.