Flipkart takes on Amazon with the launch of its UPI service

Mumbai: India-born e-commerce giant Flipkart is set to rival US megacorporation Amazon, which runs its payment vertical Amazon Pay. The company, backed by Walmart, launched its own UPI (Unified Payments Interface) service - Flipkart UPI - in collaboration with Axis Bank on Sunday.

Flipkart UPI, initially catering to Android users, is designed to eliminate the need to switch to other payment applications. 

This development comes after months of testing, with Flipkart aiming to provide "unparalleled convenience and zero-cost solutions to its user base", according to the company.

Notably, Flipkart's foray into the UPI space holds significance in the context of the National Payments Corporation of India (NPCI) seeking to diversify the UPI ecosystem, reducing dependency on a few dominant players.

Following its demerger with PhonePe, the largest UPI player, in late 2022, Flipkart appears keen to capitalize on the growing popularity of UPI as a preferred payment option. They will now offer features such as supercoins, cashback, milestone benefits, and brand vouchers post the UPI launch, Business Northeast has learned.

Dheeraj Aneja, Senior Vice President, of Fintech and Payments Group at Flipkart said, "The launch of Flipkart UPI seamlessly merges the convenience and cost-effectiveness of UPI with the trusted efficiency customers expect from us".

He emphasized Flipkart's dedication to providing safe and convenient payment options and a "wide array of rewards and benefits."

Sanjeev Moghe, president and head of cards and payments at Axis Bank, highlighted the successful partnership between Flipkart and Axis Bank, which has evolved from launching co-branded credit cards to introducing the Flipkart UPI service. Customers can now register for UPI using the @fkaxis handle, enabling fund transfers and checkout payments through the Flipkart app. Moghe added, "This solution is cloud-hosted and hence provides one of the most stable and scalable UPI platforms for customers."

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