Google Tej Business Model

There’s no such thing as free money (or a free lunch)
If you’re getting something for free, you are being sold. Google is selling you to advertisers by knowing you better, and Tez makes sense because:
  1. They know what you’re looking for (Google Search)
  2. They know what you’re watching (YouTube)
  3. They know where you’re going (Google Maps)
  4. They know what you’re reading (Google Feed)
  5. They know what you’re communicating (Google Mail)
One big gap is that they don’t know what you’re spending on.
Google Tez will give them that answer as well.



Regarding the business model, Google Tez may ease the way users purchase the product from the advertisements shown by Google. One of the pain points in selling a product to Indian users is the less penetration of the credit cards usage and a high number of the drop-off at the payments page. For example, I am selling apps through Google Play. Whenever the US users purchase the app, the average drop off is 4% at the payments page whereas for Indian users the drop-off is around 70%. Google Tez will help Google to fill this gap. If Google could provide an advertisement format with One-click buy using Google Tez which will help the advertisers to sell their products seamlessly without any drop-off, it will increase the value of the advertisement slots and Google will reap high margin out of it. It will also help them to seamlessly sell Android apps, music albums and movies through Google Play.
Regarding your second question, Google isn’t earning new users in exchange for giving free money. Since there are a lot of competitions like PayTM, Mobikwik and Flipkart’s PhonePe, Google should provide a compelling reason for the Indian users to try their app. Giving referral bonus and sign-up bonus are the proven solutions for that in the Indian market. PayTM and Mobikwik were using the same strategy during their early days.

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