Axis Bank has joined forces with Flipkart as the retail giant ventures into the digital payments sphere with its latest feature, Flipkart UPI.
Following scrutiny from the Reserve Bank of India (RBI) on Paytm Payments Bank, the e-commerce platform introduces this new service, presenting an opportunity for other fintech players in the market.
Flipkart UPI enables users to conduct online transactions seamlessly within the Flipkart app. It also allows for peer-to-peer transfers to local vendors, friends, and family via UPI ID, phone numbers, or QR codes. Moreover, the service extends its functionality to facilitate bill payments.
The introduction of Flipkart UPI by the e-commerce platform is perceived as a strategic move to broaden its footprint in the digital payments arena, intensifying competition with Amazon, which already has its own payment vertical, Amazon Pay.
The unveiling of Flipkart’s UPI service coincides with the growing trend of digital adoption in India, as more users opt for online transactions due to their convenience and enhanced security features.
Here is a point-wise view of all you need to know about Flipkart UPI –
1. Flipkart UPI, initially, designed for both online and offline transactions within and beyond the Flipkart app, will be exclusively accessible to Android users.
2. To utilize the service, individuals need to initiate the creation of a UPI ID within the Flipkart app. Following this step, they can seamlessly conduct transactions with merchants and individuals, as well as settle bills, all without the need to switch between apps.
3. The functionality will extend to various entities within the Flipkart group, encompassing Myntra, Flipkart Wholesale, Flipkart Health+, and Cleartrip.
4. Flipkart UPI aims to decrease dependency on external UPI applications like Amazon Pay, Google Pay, Paytm, and PhonePe.
5. As per the e-commerce giant, its marketplace has over 500 million registered users and a seller base exceeding 1.4 million. Moreover, in February, a staggering 12.1 billion UPI transactions were recorded, totaling a value of ₹1.83 trillion, marking a 61% increase from the corresponding period last year.
How to use Flipkart UPI feature –
- Download and install the most recent version of the Flipkart app from either the Play Store or the Apple App Store.
- Search for the ‘Flipkart UPI’ banner within the app and click on it.
- Choose the ‘Add bank account’ option.
- Select the bank you’d like to link with Flipkart UPI.
- Finish the verification procedure.
- Once the verification is completed, users can begin utilizing Flipkart UPI for smooth payment transactions.
