Google Pay app agrees to store customers' payments data locally in India

Google Pay is currently in process of complying with regulations of data localisation. Google Pay director of product manment Sharath Bulusu said at launch of 'Google Pay for merchants' in Kolkata. Google Pay is Google's digital payments app that facilitates UPI-enabled payment transactions. Bulusu said process to comply with regulations of data localisation needs to be carried out "carefully to prevent any disruption."

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Google Pay Data Localisation

"We will comply with all directives of government. We are in process of doing so," he told reporters.

Reserve Bank of India (RBI) h asked payment companies to ensure that transaction's data are stored exclusively on local servers. Data localisation refers to storing data within India.

"We have been providing services and regulations came later. We will do it without interrupting services to 67 million users. Technically, it is t that easy. However, RBI is very supportive," Bulusu said.

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In India, around 3.5 lakh brick-and-mortar retail stores are registered with Google Pay's platform whereas about 3,000 online merchants are accepting payments through Google Pay app. As on September 2019, total transaction for last 12 months was at $110 billion and number of active users rose three times to 67 million, Bulusu said, ding that "almost two-thirds of payments happened outside top seven cities" in country.

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At present, charges or MDR (merchant discount rate) are t imposed on merchants and users in order to promote digital payment in country, he said. MDR is rate charged to a merchant for payment processing services. Asked wher company will charge users for payments to generate revenue, Bulusu said, re are multiple options that would be evaluated at an appropriate time in future.

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(With PTI inputs)