India bans 200+ Chinese mobile apps in Boon for Paytm

(Bloomberg) – India has issued orders blocking another 232 apps and websites, most of which were linked to China, in a sign that relations between Asia’s two largest countries remain strained years after a deadly border skirmish.

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The federal technology ministry has ordered the removal of 138 betting and gambling apps and 94 lending services, a person familiar with the matter said. The order came from the Home Office, which oversees internal affairs such as national security, the person said, asking not to be identified because the orders were not made public. The blocked apps, including several of Indian origin, were suspected of transferring data to China, the person said.

Indian digital payments leader Paytm surged the most on Tuesday in news first reported by local media including the Economic Times. Lending apps to be banned included competitors such as PayU’s LazyPay, owned by Naspers Ltd. is supported, the newspaper reported, citing anonymous sources.

Shares in Paytm parent company One 97 Communications Ltd., which is backed by Ant Group Co., were up as much as 20% in early trade. On Monday, the Economic Times reported the government blocked numerous credit apps and other China-related services. The news, which emerged just days after Paytm, reported smaller losses.

“Due to unavoidable circumstances, our website and app are currently unavailable through a small number of internet service providers. Please rest assured that we are doing everything we can to resolve the issue,” PayU said in an emailed statement, without elaborating. India’s Technology Ministry did not respond to a request for comment.

Prime Minister Narendra Modi’s government has moved to bar Chinese tech giants from India’s massive market after more than a dozen Indian soldiers died after a clash between the two nuclear-armed neighbors at a disputed Himalayan border. It has banned hundreds of services, including Tencent Holdings Ltd.’s WeChat. and TikTok by ByteDance Ltd. as ties between the two countries sour.

India’s central bank has also tightened regulations on digital lending after finding some apps allegedly flouting norms and harassing customers.

LazyPay, PayU’s buy-it-now-pay-later service, has been blocked by the Tech Ministry’s order, the Economic Times newspaper reported. Another lending platform, Kissht, was not available in India.

India is also trying to rein in Chinese firms in other areas. It is considering blocking Chinese smartphone makers from selling devices cheaper than 12,000 rupees ($150) in a bid to boost stalled domestic industry and boost brands like Xiaomi Corp. to deliver a blow.

Read more: Paytm shares soar after payments Giant reports smaller loss

–Assisted by Saritha Rai and Loni Prinsloo.

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