The concept of ‘Digital India’ is going on full swing, as enterprises, especially ones that offer digital solutions, find this to be a golden age in delivering disruptive solutions. Mobile payments is one of the biggest wave of disruptions to hit the stride recently. The latest offering is another all-new mobile payment app. This time it has come from the house of Google, called Google Tez.

The Basics: What is Tez?

Released on 17 September 2017, Google Tez is a free mobile money transferring app specifically built for Indian users. Banking on the concept of ‘‘Digital India’, Google Tez is designed and delivered to take users a step closer towards a more friendly and secure money transferring platform.

How does it work?

Tez app allows users to link their bank account to another Tez user’s bank account and initiate money transfer. The transfer is done through UPI (Unified Payment Interface) system, regulated by Reserve Bank of India where users are required to create UPI ID and Google ID to perform money transaction. Through Tez the UPI system allows users to transfer money in real-time.

The strength of Tez lies in its simplicity and ease of use. All the user has to do is launch the app, search in their contacts for other Tez users, enter the amount, and send. It’s that simple.

Since the app does not have wallet concept, it does not store money. Instead, the money is transferred directly from bank to bank.

The unique feature of Tez is its ‘Cash Mode’, which allows users to send and receive money in close range [by holding sender and receiver phones in a close range], without having the need to exchange phone numbers or any other personal information, however, they are required to update device calibration.

Technology used

When the Cash Mode is enabled, the app uses Audio QR (Ultrasonic sound) to transfer money, and once both devices recognize the sound (inaudible to our ears), money transaction is enabled. The app also leverages on the phone’s sensor and microphone. While sending and receiving money through the Cash Mode, users do not require mobile number, UPI ID or bank details.

Tez also allows users to pay through QR code mode. They just have to scan the code and make the payment.

Main differences between Tez and Paytm

  • Compared to Tez, Paytm offers more features
  • Unlike Paytm, Tez relies heavily on its brand, Google
  • The ‘Cash Mode’ method of transaction is not available in Paytm
  • The Tez app is lite, uses just about 7 mb of space
  • While Paytm is a single option payment platform, Tez offers 4 – UPI ID, Cash Mode, QR Code, and mobile number

Google tells why Tez doesn’t support ‘Pay by Aadhar’ feature

Prior to the release, the app had come under scrutiny, especially regarding its privacy policy. Also, rumours began to surface that it users may have to provide information such as bank account number and Aadhar number. However, Caesar Sengupta, a senior executive at Google, said that they had considered ‘pay by Aadhar’ option, but had to drop it due to lack of clarity within Indian government’s regulation and policies pertaining to Aadhar.

Though ‘pay by Aadhar’ option is omitted as of now, it is not completely ruled out. Chances are it might be added in the near future.

Will Google Tez be a game-changer?

Industry experts feel that branding Tez as a ‘game changer’ premature verdict. Despite its innovative features to disrupt the current mobile payment landscape, they say it is too early to give that tag to it. Just because it’s from the house of Google, it doesn’t mean the technology is infallible, some experts feel. It seems to be a reasonable doubt, considering the fact that every technology has its good and bad sides.

So, will Tez create an edge for its competitors and emerge as a winner?

Obviously, it is hard to provide a concrete answer to the question now. However, high hopes are laid on Tez, and the app is attracting users through its ‘use-Tez-and-earn-money’ marketing tactics to pull more users into its kitty.

Since the Tez is new and hot, and designed to facilitate users with uncomplicated and secure means of mobile payment, users are beginning to get the picture of both sides of this coin; some find the app to be superby simplistic, while others feel it is not self-explanatory. So, the opinions are gathering, experts are scrutinizing, and this is an acid test phase for Tez.

The best answer, as of now would do, is – only time will tell the score of Tez.

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