Flipkart-owned PhonePe has Introduced its UPI Based Mobile Wallet

India: PhonePe, co-founded by former Flipkart employees Sameer Nigam and Rahul Chari, got acquired by Flipkart in April,2016. The wallet service is equipped with an Android platform and was launched in partnership with the private sector lender Yes bank.

The company will provide numerous bill payment services, easy mobile recharge, peer-to-peer money transfers. For the existing users of Flipkart and Myntra, the mobile wallet services will be transformed into PhonePe wallets and allow the customers to make easy payments & get faster refunds. The PhonePe wallet will also allow the company to expand into number of other areas, apart from its core business of online commerce. It has also helped Flipkart in opening its logistics business Ekart to both online and offline companies and accelerated its revenue.

Furthermore, Flipkart is hoping to cut down on number of Cash on Delivery orders, by leveraging potentials for the PhonePe wallet. This will increase the transaction rates for the company and increase the customer base.  

TechSci Research depicts that the rising focus of the e-tailers such as Flipkart towards easy payment solutions will aid in the acceleration of the customer base and enhance their performance levels.

According to a recent report published by TechSci Research, “India Mobile Wallet Market Forecast and Opportunities, 2020”, the mobile wallet market in India is forecast to reach USD6.6 billion by 2020. Growing awareness regarding the benefits of mobile wallets, rising smartphone and mobile internet penetration rates, and increasing security measures are expected to drive growth in India mobile wallet market. In 2014, Tier-I cities such as Delhi, Mumbai, Kolkata, Bangalore, Pune, etc., registered the highest number of mobile wallet users in the country, while Tier II cities such as Jaipur, Lucknow, Chandigarh, Indore, Patna, etc. are emerging cities in terms of mobile wallet usage. Banking accounted for the largest end user sector in the country’s mobile wallet market in 2014, followed by retail, telecom and transportation sectors. Few of the leading companies operating in India mobile wallet market include One97 Communication Pvt. Ltd., MobiKwik and ItzCash.