Flipkart Is Planning To Launch A New UPI-Based Payment Solution: What's Cooking?

Flipkart, India’s largest e-commerce platform, is poised to launch a new payment product within a month, aimed at enhancing user engagement and transaction frequency, Group CEO Kalyan Krishnamurthy disclosed in a recent interview. The details of the product remain under wraps, but the company has been testing a Unified Payments Interface (UPI) service, hinting at its likely nature.

What Happened? Krishnamurthy, speaking to MoneyControl, emphasized the user-centric approach of the upcoming payment option, catering to the diverse needs of Flipkart’s 500-600 million users, whether for shopping, flight bookings, or buying medicines. This initiative is part of a broader strategy to increase customer visits to the platform, thereby boosting sales.

Flipkart isn’t new to financial services; it has previously partnered with Axis Bank to launch a lending marketplace and a successful co-branded credit card program, boasting over 4.5 million active users. Its “Buy Now Pay Later” service, Flipkart Pay Later, has also been operational for some time.

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The focus, according to Krishnamurthy, is on integrating financial services like lending into the core shopping experience, particularly for high-value items.

No lofty targets just yet: Krishnamurthy clarified that while Flipkart aims to facilitate more affordable shopping experiences and may earn from financial institutions, it does not aspire to become a major player in the payments or fintech sector.

Flipkart expects its upcoming UPI platform, developed after spinning off its former payment arm PhonePe, to streamline the checkout process for customers, reduce transaction failures, and enhance the overall shopping experience.

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