Google Pay, a digital payments application of search giant Google, on Tuesday said the “transition is underway” to comply with the Reserve Bank of India (RBI)’s norms on data localisation related to payments, and it is currently working with its banking partners and NPCI to make sure that “everything is safe” in this transition.
“When you move data from one server to another, there is a lot of detailed intricate technology that goes to make sure that everything is safe and secure. We are working with our banking partners and NPCI (National Payments Corporation of India) to make sure that everything is safe. We are absolutely committed to make sure that all laws are met,” Google Pay director for product management Sharath Bulusu said here.
RBI in April last year had put out a circular, asking payment firms to ensure that their data relating to payment systems are stored exclusively on local servers in India. “The transition is underway,” Bulusu told reporters, adding Google Pay had a local server and storage in India.
“Data localisation norms came after the launch of G Pay. We expect that as the ecosystem evolves, there will be new things as well. We must make sure that there is no knee-jerk reaction. Because if there is a knee-jerk reaction, you might create interruptions and security problems.”
“One aspect also to keep in mind is when certain changes happen it is a large user base transacting in large volume. So, any change we make we have to make them very carefully and responsibly so that the services of 67 million users are not affected and that the safety and security of data are maintained,” Buluru pointed out.
Notably, for the digital payments application of the search giant, number of monthly active users grew to 67 million in September 2019 as against 22 million in the same month previous year.
“We operate in a number of markets and everywhere our absolute commitment is that we will respect all the laws of the land. In every single place, our commitment is always to be compliant fully,” Buluru averred, who was in Kolkata to announce the rollout of a merchant-focused app — Google Pay for Business.
On the time by when the data localisation process, initiated by the firm, is expected to be completed, he said, “I cannot talk about specific dates.” According to Google Pay, the merchant-focused application launched is a free and easy way for merchants to adopt digital payments. The application transfers the entire merchant’s earnings directly into their UPI-linked bank account.
Currently, more than 3,000 online merchants accept digital payment applications of Google Pay. Being used across three lakh cities, towns and villages, over 60% of its transactions currently emerge from and beyond the metro cities in India.