PhonePe users will also be able to use their goCash balance, Goibibo's promotional currency in the PhonePe app, to book domestic and international hotels.
PhonePe has tied up with online travel agency GoIbibo for an app-in-app partnership, under which it will provide a unified login and payments experience to over 100 million PhonePe users while making their hotel bookings.
The payment services provider already has a similar partnership with online cab aggregator Ola.
"The problem that we face that at the payment page. The integration with banks and wallets is not a seamless one. The integration has a problem in which we lose customers to the tune of close to 15-20 percent," Sanjay Bhasin, chief operating officer, Goibibo told Moneycontrol in an interaction.
He added that the partnership with PhonePe is expected to solve the problem of failed transactions.
Bhasin also said that the partnership is on a revenue-share basis, wherein the majority of the commission earned by the hotels will go to PhonePe.
This partnership will give PhonePe's customers access to over 50,000 domestic hotels and homestays and half a million international hotels on Goibibo's platform. They will now be able to make hotel bookings within their PhonePe app.
PhonePe users will also be able to use their goCash balance, Goibibo's promotional currency in the PhonePe app, to book domestic and international hotels.PhonePe currently claims to have 100 million users. Besides Ola, it has also tied up with Redbus. By the end of this year, it plans to have 15-20 merchant stores on its app.