Munsif Vengattil, Krishna N. Das

NEW DELHI, Reuters – Alphabet (NASDAQ) Inc is currently in discussions with India’s government about integrating its shopping services with ONDC’s open ecommerce network. Two sources close to the matter confirmed that this was happening.

As part of its efforts to challenge the U.S. dominance in the fast growing e-commerce sector, India soft launched the Open Network for Digital Commerce (ONDC).

Google talks are a result of Google’s success with its payments business, thanks to the Unified Payments Initiative by the government for financial transactions. Interface (NASDAQ:), stated one source. The sources declined to identify themselves as they weren’t authorized to talk to the media about the subject.

Google’s shopping service is a aggregator for listings online. It doesn’t do any delivery or order fulfillment like Amazon.

Google declined to say whether they were in negotiations with the government.

A spokesperson for Google Pay stated, “We are committed to the enablement small and medium business to leverage digital to deeper discovery and payment capabilities with Google Pay.”

The ONDC Project’s partners, including Paytm in India, will display listings of each other via their platforms in search results. This government is trying to even the playing field and reduce the costs of selling products online.

ONDC’s goal is to bring together 30 million sellers, 10 million merchants and other online businesses in at least 100 locations by August.