Why Flipkart has rolled out UPI service, and how you can sign up for it
Etail giant seeks to reduce dependence on third-party UPI apps such as Paytm, PhonePe, Google Pay and Amazon Pay
E-commerce giant Flipkart has unveiled its Unified Payments Interface (UPI) service for online and offline payments within and outside its app.
Flipkart claims to have more than 50 crore registered users and 14 lakh sellers on its marketplace. In this scenario, the move will allow Flipkart to reduce dependence on third-party UPI apps such as Paytm, PhonePe, Google Pay and Amazon Pay.
“Recognising the dynamic digital landscape, the launch of Flipkart UPI seamlessly merges the convenience and cost-effectiveness of UPI with the trusted efficiency customers expect from us,” said Dheeraj Aneja, Senior Vice President, Fintech and Payments Group at Flipkart, on March 3.
How to create a UPI ID on Flipkart?
Customers can create a UPI ID on the Flipkart app to make payments to both merchants and individuals and also pay bills without switching apps. Launched in collaboration with Axis Bank, the service will initially be available for Android users, the company said in a statement.
“At Flipkart, we are committed to delivering the best-in-class commerce experience to customers by offering safe and convenient payment options along with a wide array of rewards and benefits such as Supercoins, Brand Vouchers, and others,” said Aneja.
The in-house UPI facility will be spread across Flipkart group companies including, Myntra, Flipkart Wholesale, Flipkart Health+, and Cleartrip.
Sanjeev Moghe, President and Head, Cards & Payments, Axis Bank, said customers can register for UPI with the @fkaxis handle and can do all fund transfers and checkout payments using the Flipkart app. "This solution is cloud-hosted and hence provides one of the most stable and scalable UPI platforms for customers,” he said.
What prompted Flipkart to launch its UPI service?
E-commerce players have been launching their UPI handles to extend better services to their customers and avoid redirection to third-party payments apps.
The new UPI offering comes in the aftermath of Flipkart demerging with PhonePe, the largest UPI player, in late 2022. “With UPI emerging as the preferred payment option, the launch of Flipkart UPI will provide unparalleled convenience and zero-cost solutions, democratising access to seamless payment options. The UPI offering will enable smooth onboarding and allow users to conveniently avail of the feature for online and offline merchant transactions within and outside the Flipkart marketplace,” the company said.
Food delivery major Zomato recently launched its UPI service, while rivals Amazon and Tata Neu have been offering the same for some time. Likes of WhatsApp and MakeMyTrip, too, have their handles as well.
In February, transactions on the UPI stood at 1,210 crore for a total value of Rs 18.3 lakh crore, a 61 percent rise from the year-ago period.
