Flipkart launches UPI service to reduce dependency on third-party apps

Flipkart claims to have over 50 crore registered users and 14 lakh sellers on its platform

E-commerce major Flipkart has rolled out its Unified Payments Interface (UPI) service for online and offline payments within and outside its app.

The move will allow Flipkart, which claims to have more than 50 crore registered users and 14 lakh sellers on its marketplace, to reduce dependence on third-party UPI apps such as Paytm, PhonePe, Google Pay and Amazon Pay.

"Recognizing 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," Dheeraj Aneja, Senior Vice President, Fintech and Payments Group at Flipkart, said on March 3.

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.

The service, launched in collaboration with Axis Bank, 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" Aneja said.

The in-house UPI facility will be spread across Flipkart group companies including, Myntra, Flipkart Wholesale, Flipkart Health+, and Cleartrip.

“Axis Bank has always been at the forefront of extending multiple payments flows of UPI to its customers. We continue to scale our growth in UPI with partnerships and innovations. Our partnership with Flipkart has come a long way from launching one of India's most successful co-branded credit cards to now launching the Flipkart UPI service," Sanjeev Moghe, President and Head, Cards & Payments, Axis Bank, said.

E-commerce players have been launching their UPI handles to service their customers better and avoid redirection to third-party payments apps.

Recently, food delivery major Zomato 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.