Google going into lending as well? Plans to offer loans to small and medium-sized businesses in India through "Google Pay" in the second half of the year

According to the TechCrunch report, tech giant Google plans to offer loans to millions of small businesses in India through its payment app "Google Pay" in the second half of the year, aiming to help mitigate the impact of the COVID-19 pandemic on Indian SMEs and expand the business model of Google Pay.

To curb the continued spread of COVID-19, the Indian capital New Delhi ordered a nationwide lockdown in late March, forcing most businesses to halt operations. Despite this, India reported a record high of 16,000 new cases on the 24th, with over 456,000 confirmed cases to date. The New Delhi government estimates that there will be 550,000 confirmed cases by the end of July, making it the fourth most affected country in the global pandemic.

Conquering the Open Banking Territory

Google has stated that it is collaborating with relevant financial institutions to provide corporate loans through "Google Pay for Business", a payment app launched at the end of last year that has already accumulated 3 million businesses. Google emphasizes that this effort is aimed at smaller-scale businesses in India.

It is understood that Google has made many attempts in the financial field since 2006 and in 2018, it integrated its Google Wallet and Android Pay into Google Pay. In addition, Google has made various deployments in the Indian market.

Google My Business, an app launched in India in the second half of 2017, aims to help small family-run businesses establish an online business model. Currently, there are over 26 million businesses operating on this app in the country, and Indian authorities estimate that there are around 60 million similar small enterprises nationwide.

India – A Land of Strategic Importance

Not only has Google seen the potential of this blue ocean market, but Binance, one of the leading players in the cryptocurrency industry, also has a significant interest in this world's most populous country with 1.339 billion people. In March this year, Binance established a $50 million fund in India to invest in startups or projects that use blockchain technology to solve industrial and social problems.

Furthermore, a previous report from OKEx also indicates that the high demand for remittances in India will drive the adoption of cryptocurrencies, including their use as a medium for cross-border remittances and converting into stablecoins. In April this year, the Indian Supreme Court overturned the central bank's ban on cryptocurrency trading, injecting a dose of confidence into the Indian market.

This year, Facebook also acquired a 9.99% stake in India's largest telecommunications company, Reliance Jio, for around $5.7 billion, marking the largest foreign direct investment in the Indian tech sector. Meanwhile, Whatsapp has established strategic partnerships with the company and its retail subsidiary, Reliance Retail. However, Whatsapp briefly launched its payment feature in Brazil, only to be suspended by Brazilian authorities citing risks, less than ten days after its launch.