How Google Pay Makes Money ?

Google Pay India reported annual revenue of Rs 1,501 crore and Net profits of Rs 32.87 for the financial year 2020.

But 80.5% of the revenue i.e Rs 1,173.4 crore was reimbursements received from the holding entity Google Asia Pacific.

Interestingly, revenue from direct customers stood at Rs 72.07 crore, making up only 4.8% of Google Pay's revenue during FY20.

UPI Transactions are free. Registration and bank account linking are also free then how it makes money? These are 3 main revenue sources -

1. Bill Payments We can pay different kinds of bills like electricity bills, DTH recharges, loan payments, etc using Gpay. GPay gets a commission from the company for this transactions.

2. Mobile Recharges It is the primary revenue source for GPay. Whenever we make a recharge on a SIM operator using GPay, it gets commissions for the transaction.

3. UPI Transactions  GPay doesn't earn any direct revenue from UPI transactions. But user data helps the company to make further products efficiently which can generate great revenue for the company.

The free UPI Transaction service attracts more users. Then those users will pay bills and recharge their mobiles using this app which will generate revenue for GPay.