PhonePe's localized app store to challenge Google's dominance: Here's how
Walmart-backed PhonePe is India's leading UPI payments app. In the UPI space, it battles with Google Pay, which is the second-most popular UPI app in the country. The competition between PhonePe and Google is set to become even more intense now. The fintech unicorn is preparing to launch an Android app store in the country, which is expected to irk the tech giant.
Why does this story matter?
PhonePe and Google have been battling it out in India's UPI space for years. The former, however, has much bigger ambitions than just being the leader in mobile payments. Earlier this month, the company made an e-commerce push with its hyperlocal app dubbed Pincode. Now, separated from Flipkart, the new app store is another example of PhonePe's lofty ambitions.
App store to offer hyperlocalized services
Like Pincode, which focuses on hyperlocal commerce, PhonePe's upcoming app store will also offer hyperlocalized services. PhonePe's app store will concentrate on offering apps and services based on customer context. User acquisition will be a major focus of the app store. It will offer users a premium experience with "high-quality advertisements and custom targeting."
PhonePe's app store to support 12 languages
PhonePe's alternative app store will offer support for 12 languages to ensure a localized experience. However, it will not be limited to language. The experience will be localized based on a "discovery and consumer interest perspective" as well, PhonePe told TechCrunch. The company is already in talks with smartphone vendors in India. "Everyone is very receptive," the firm added.
CCI order opened door for PhonePe
PhonePe's app store will reportedly be launched in the coming days. The company called the timing of the launch "favorable." It was referring to Google's battles with the Competition Commission of India (CCI). Notably, an order by India's competition watchdog has paved the way for OEMs to bundle phones with other app stores. Google currently controls 97% of the app market.
App developers unhappy with Google
PhonePe's focus on offering a localized experience is expected to deliver a challenge to Google. Considering app developers' problems with Google and its billing service, PhonePe might be able to lure them. However, Google may not take this challenge lightly. PhonePe has trumped Google in UPI payments; the tech giant may not want the same to happen in the app store space as well.
PhonePe leads Google in UPI transactions by significant margin
PhonePe currently controls 46.38% of all UPI transactions. Google Pay, on the other hand, is a distant second, with a market share of 34.75%. When it comes to the value of transactions, PhonePe leads with 49.45%, while Google Pay's share is 33.75%.
