Flipkart UPI Launched in India to take on Amazon Pay UPI, PhonePe? How to Activate It?

Flipkart, a leading e-commerce giant in India, has expanded its suite of services with the introduction of UPI payment options. This move, facilitated through a partnership with Axis Bank, marks Flipkart's strategic entry into the digital payments space.

Users across India can now leverage the Flipkart app for a wide range of transactions including paying merchant QR codes, settling electricity bills, mobile recharges, and engaging in peer-to-peer (P2P) money transfers.

Flipkart UPI Debuts in India

The launch of Flipkart UPI is timely, considering the regulatory challenges faced by Paytm, another key player in the digital payments sector. Flipkart's foray into this domain follows its December 2022 separation from PhonePe, a former subsidiary that has grown to command a significant share of India's UPI payments market. So let's find out how Flipkart UPI works:

How to Activate Flipkart UPI?

1. Search for the 'Flipkart UPI' banner within the app and tap on it
2. Choose the option to 'Add bank account'
3. Choose the bank you wish to link with Flipkart UPI and complete the verification process
4. Once verified, you can start using Flipkart UPI to make payments

Moreover, Flipkart is enticing users with discounts up to Rs 10 as a part of a limited-time offer.

Flipkart's Venture into Digital Payments

Flipkart's UPI functionality has been broadened to include support for UPI on credit cards, allowing users to link their RuPay credit cards for merchant payments. This integration signifies Flipkart's commitment to providing flexible and inclusive payment solutions to its vast user base.

Flipkart's venture into digital payments is underpinned by its acquisition of PhonePe in 2016, at a time when UPI's presence in India was minimal. Under Flipkart's stewardship, PhonePe flourished, capturing nearly 50% of the market share. Although Flipkart and PhonePe have opted to pursue independent paths since their separation in December 2022, both entities aim to maximize their growth potentials in their respective fields.

Flipkart's introduction of UPI services could potentially alter the dynamics of the digital payments landscape in India, especially considering the challenges faced by competitors like Paytm. With Amazon Pay already established as a formidable adversary, Flipkart's strategic move into the payments sector is expected to intensify competition.

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