How Tez works: 

How Tez works: 

Context:

• Google’s entry into India’s payment wallet app market

What is Google Tez?

• Google Tez is a mobile wallet based on the Unified Payments Interface (UPI) platform built by the National Payments Corporation of India (NPCI).

How does it work?

• It permits users to transfer money without the recipient’s bank account details.
• The UPI ID of the recipient is used as a proxy for the account number and IFSC code, thereby simplifying the money transfer.

How is it different from digital wallets?

• Tez does not require money to be stored in the app to make digital payments.
• It works as an extension of one’s bank account; so, unused money remains in the bank, earning interest.
• Each transaction is initiated by the sender entering his UPI pin with the additional security of existing phone locks.

How can you transfer money using Tez?

• Can be used on an Android or an iOS device
• Users have to sync their wallets with their Google account, and the mobile number linked to it.
• Access to the wallet from the app drawer is protected by a Google PIN and by security settings on the device, such as passcodes, fingerprints and pattern locks.
• Integration of one’s bank account with the wallet is done via SMS
• Integration will not be completed if the phone number associated with the account does not match
• Non-Resident Indian (NRI) account is not supported for this feature.
• Users without a UPI id will have to create one and enter a secure UPI pin.

What are the other features included?

• Users also have the option of making transfers to bank accounts by entering the account number of the recipient and the related IFSC code.
• Payments can be made by using the camera to scan a QR code, or entering the phone number of the recipient.
• The app automatically identifies contacts who have successfully registered with the Tez database.
• A fourth alternative is the ‘Cash Mode’ that allows quick transfers with nearby Tez users without sharing phone numbers.
• Cash Mode can be used to pay as well as receive money from devices within its range.