Flipkart users can now make payments using the UPI on check-out via the mobile app. The option was rolled out on Tuesday using a PhonPe app integrations with the latest Flipkart app update, according to the app’s Play Store page. The development was reported by Economic Times. Users could earlier pay for Flipkart purchases using PhonePe, but the PhonePe app needed to be installed on the device to process payments. With the new update, any user can use UPI option from within the app without downloading PhonePe externally.
Transactions are limited to Rs 1 lakh per day for each linked bank account within PhonePe, a spokseperson from Flipkart told MediaNama. Users can make a single transaction of not more than Rs 1 lakh or multiple transactions adding upto Rs 1 lac within a day. The ET report mentioned that the PhonPne integration is yet to go live on iOS
While we tried to make a payment via the UPI option, the Flipkart app redirected to a page asking to login to an existing PhonePe account. Users without a PhonePe account will need to register with a phone number and bank details to process payments. After the registration is complete, users can make use of the UPI option for future purchases without logging in each time as the details are saved within the app.
Flipkart had acquired PhonPe in April last year for an undisclosed amount. The payments app was initially founded by three former Flipkart employees Sameer Nigam, Rahul Chari and Burzin Engineer in December 2015. PhonePe launched its UPI payments feature on Android in August through a partnership with Yes Bank. The app can also be used for other transactions like DTH, mobile, datacard, electricity and gas recharges. It also allows users to share/split bills with friends and withdraw funds back to the bank account.
Flipkart’s acquisition in the payments space
Note that Flipkart had earlier acquired two other companies in the payments section. In September 2015, it acquired majority stake in FX Mart, which holds a prepaid payments license from the Reserve Bank of India, and in December 2014, it had acquired majority stake in mobile payments company ngpay.
In March last year, Flipkart had launched its own digital wallet service named ‘Flipkart Money’ for cutting costs while handling cash refunds. This is currently defunct. The cash refunds and payments processing was later integrated with PhonePe after the PhonPe acquisition.