Flipkart Rolls Out UPI Services to Counter Third-party Apps

Flipkart Rolls Out UPI Services to Counter Third-party Apps

Unified Payments Interface (UPI) services have been launched by Flipkart, which will empower customers to set their own UPI for online and offline merchant transactions within and outside of the e-commerce marketplace.

As announced by the organisation in the press release “ on the Flipkart app, the UPI is used to pay for products and services including scan and pay to UPI ID, e-commerce transactions and recharges and bill payments. This move will help reduce the reliance of Flipkart on third-party apps such as Paytm, Phonepe, Google Pay, and its arch-rival Amazon (via Amazon Pay). 

Flipkart, a Bengaluru-based firm, claims that it has more than 500 million registered users and 1.4 million sellers on its marketplace. In the starting phase, it partnered with Axis Bank, wherein customers need to register for UPI with the ‘@fkaxis’ handle digital transactions through the app. At first, this feature will be able to be used by Android users.

It’s noteworthy that, Flipkart gives co-branded credit cards in partnership with Axis Bank. The Walmart-owned firm is also getting help from Axis Bank to expand its offering in the fintech space. Flipkart is planning to launch a new fintech platform called Super, as per the media report. As announced by Prakash Sikaria, Flipkart will invest $20 million in the new entity.

Flipkart raised $600 million from the holding company Walmart in December. Zomato, a food tech major, also launched its own UPI services in partnership with ICICI Bank, last year.

Thought of YFS on Flipkart’s Launch of UPI Services

Your First Startup (YFS) feels the launch of UPI services by Flipkart will help its users prefer its services more. As per this startup news India, the launch will help Flipkart reduce its reliance on third-party apps. We hope Flipkart will expand its footprint further with this exciting innovation.