Chinese smartphone maker Xiaomi is said to be working on its payment service, Mi Pay. As per the recent Business Line report, Xiaomi is seeking approval from Reserve Bank of India (RBI) to start its payment operation in the country. The Chinese firm has reportedly conducted trials and is awaiting go-ahead from the banking regulator.
Xiaomi’s Mi Pay service was launched in China in 2016 with China’s UnionPay’s support for payments over Near-field communication (NFC) technology. In India, however, it is said to be based on the Unified Payments Interface (UPI) protocol.
Currently, there are a lot of UPI-enabled payment services available in India such as Google Pay (formerly Google Tez), WhatsApp Payments, PhonePe, Paytm, Truecaller, Freecharge and more. Additionally, almost all private banks allow UPI payments, courtesy of their respective mobile apps for Android and iOS users.
Given the fact that Xiaomi happens to be the most popular smartphone brand in India as far as the number of shipments and market share is concerned, the Mi Pay’s arrival in India will be hardly surprising.
Samsung and Apple have their respective NFC-enabled payment services like Samsung Pay and Apple Pay. And given Xiaomi’s user base, Mi Pay might help the company emerge as one of the leading payment platforms in India.
Last month, Reserve Bank of India (RBI) Governor Urjit Patel formally announced UPI 2.0. Some of its key highlights, UPI 2.0 allows customers to link their overdraft (OD) account with UPI, in addition to their saving and current accounts to the payment interface. It allows scheduling payment transfers at a later date.