The Chinese smartphone maker is conducting tests for its upcoming payments service in India, which is set to be powered by the UPI, if approval is granted by the RBI.
Chinese smartphone maker Xiaomi is awaiting licence approval from the RBI (Reserve Bank of India) to enter India’s payments market, reported Hindu Business Line.
Launched in 2016, the company’s digital payments platform, Mi Pay, has already started conducting trials for its upcoming service in India, which will be powered by the UPI (United Payments Interface), if RBI approval is granted.
Xiaomi has invested in Indian private lenders, tie-ups which will help it with payments system integration. It is planning to partner with more local lenders once its licence is approved.
Xiaomi would effectively become the second Chinese company (after Alibaba, which has investments in Paytm) with an interest in India’s payments market. Once it enters the market, Xiaomi will be competing with the likes of Paytm, Google Pay, Phone Pe, PayU, BHIM and WhatsApp.
Notably, WhatsApp Payments’ official launch was delayed in July due to the government’s concerns over how user data will be stored, among other issues. Its final approval is still pending.