This is an interesting topic and I share my opinion about it. View the original post written by me on Quora.com

As of now Google pay does not making enough money but Google have something different business model for Google Pay.

1. With Google Pay, Google can know the expenditure behavior of a customer and can show similar ads to the user.
2. With Google Pay, Google can show merchant outlet as per user interest therefore Google offer caskback on transaction to attract more and more user to the platform.
3. May be In Future Google Pay can Integrate feature like Paytm Mall where will Google Connect Google Pay user to online Merchant like Flipkart and Amazon.
4. Google Pay Business is very similar to Zomato and Swiggy where main principal is to connect user and merchant with Google Pay platform and grow the business of merchant and charge smaller amount to the merchant .

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