In an exciting development in the digital payments arena, Flipkart, the ecommerce giant backed by Walmart, has unveiled its latest fintech solution, Flipkart UPI, in collaboration with Axis Bank. This initiative marks a significant step forward, broadening Flipkart’s fintech portfolio beyond its co-branded credit card launched with Axis Bank in 2019.
Entering a Competitive Arena
The introduction of Flipkart UPI propels the company into direct competition with established players in the digital payments sector, including Amazon Pay, Paytm, PhonePe, and Google Pay. Designed to facilitate a wide array of transactions, Flipkart UPI promises a versatile platform for both online and offline payments, ranging from e-commerce purchases to bill payments and recharges.
In a move aimed at enriching the user experience, Flipkart announces an array of loyalty benefits tied to its UPI service. Customers can look forward to earning Supercoins, receiving cashback, unlocking rewards for reaching spending milestones, and enjoying brand-specific vouchers.
Strategic Shifts and Market Dynamics
The launch comes after Flipkart’s strategic decision in 2022 to divest its stake in PhonePe, a leading digital payments platform which it acquired in 2016. Despite PhonePe’s commanding presence in the UPI payment market, Flipkart’s foray with its UPI offering is poised to diversify the digital payment options available to consumers, aligning with the National Payments Corporation of India’s (NPCI) vision for a more inclusive UPI ecosystem.
Flipkart’s venture into UPI payments has been in the pipeline since last year, with the platform now enabling in-app UPI transactions to streamline the payment process for its users. This integration within the Flipkart app is aimed at offering a hassle-free payment experience, eliminating the need for third-party apps for UPI transactions.
Focused on Convenience and Security
Highlighting the launch, Dheeraj Aneja, Senior Vice President of Fintech and Payments Group at Flipkart, emphasized the blend of convenience and cost-effectiveness that Flipkart UPI brings to the table. This initiative underscores Flipkart’s commitment to providing a superior commerce experience through secure and straightforward payment methods, complemented by a host of rewards and benefits.
Sanjeev Moghe, President & Head of Cards & Payments at Axis Bank, reflected on the evolving partnership with Flipkart, from co-branded credit cards to the innovative Flipkart UPI service. Users can register for UPI using the @fkaxis handle, leveraging the Flipkart app for a variety of payment transactions, backed by a stable and scalable cloud-hosted UPI platform.
Financial Fortification and Growth
In conjunction with its UPI launch, Flipkart Internet, the company’s marketplace division, secured approximately INR 924 Cr ($111 Mn) in funding from its Singapore-based entities, indicating robust financial health and an optimistic outlook for growth. This capital infusion follows a record-breaking Big Billion Days sale event and a significant 42% increase in operating revenue in the fiscal year 2022-23.
As the Indian fintech landscape continues to expand, with a projected market size of $2.1 Tn by 2030, Flipkart’s strategic moves, including the rollout of Flipkart UPI, are set to further enhance its competitive edge and contribute to the broader fintech ecosystem’s growth.
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- Source: https://timesnext.com/flipkart-axis-bank-unite-introduce-upi-payment-solution/
