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PhonePe introduces credit card bill payments

Update: In an emailed response, PhonePe CEO Sameer Nigam said that PhonePe will take “few more months to add support for all other card networks.” No definitive date was provided. He also added that PhonePe will not require IFSC code to be entered to make a credit card bill payment and requires users to enter their credit card number and make the payment using UPI or debit cards.

He also clarified that the NPCI sets a daily limit of Rs 1 Lakh for UPI transactions.”For Debit cards there is no limit at all. So users can pay their CC bills no matter how high their bill,” he added.

Earlier:  PhonePe, the unified payments interface (UPI) payments application from Flipkart, has now introduced credit card bill payments. On the app, it has a new tab for a credit card under the ‘recharge and pay bills’ section. Right now, it looks like it will only be supporting credit cards which are on the Visa network. No word on credit cards which are on other card networks such as MasterCard, RuPay and American Express.

MediaNama has written to the company for a comment on the addition and will update once we hear from them.

The addition of credit card bills is significant as this is a feature that is not available in most wallet apps. But what is more interesting is that PhonePe seems to be taking aim at mobile banking applications. Traditionally, credit card bills were paid online through NEFT and require users to enter the IFSC code.  But considering that PhonePe runs on the UPI rails, it should be able to transfer the amount to the card issuer and the IFSC code.

Note that wallets are not allowed on the UPI but PhonePe is the exception.The payments company began purely operating on the UPI and allowed P2P money transfers. But since it got bought over by Flipkart, it merged the wallet licence from FX mart with PhonePe. Flipkart had acquired FX Mart in September 2015 and it bought PhonePe in April 2016.

However, PhonePe still has limitations as it has a transaction limit of Rs 10,000 or limits that a bank imposes on UPI transaction (HDFC Bank has a cap of Rs 10,000 for UPI transactions from a third party app like PhonePe). But the average credit card spends stood at Rs 3063 for the month of July so the transaction limit shouldn’t be a problem for most credit card users.


PhonePe has received $38.7 million (Rs 254.43 crore) from its parent company Flipkart via its Singapore-based group company Flipkart Payments Pvt. Ltd. This is the third tranche of funds injected in the payments company since it was acquired. The earlier ones were:

October 2016: Rs 83.68 crore by allocating 4.18 million shares at Rs 200 per share.

April 2016: Rs 102.94 crore via allocation of 5.42 million shares at Rs 190 per share.

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