PhonePe, a Flipkart Group company, and YES BANK, India’s 5th Largest Private Sector Bank, have partnered to launch India’s first UPI (Unified Payments Interface) based mobile payments app earlier today, in a move aimed at significantly disrupting the digital payments landscape across India.
PhonePe allows users to link their bank accounts securely to their smartphone using NPCI’s encrypted libraries. Once linked, users can authorize money transfers or merchant payments instantly by simply entering their 4-6 digit MPIN. Money is instantly transferred directly from the sender’s bank account to the recipient’s bank account. There’s no need to enter an OTP to authorize a transaction anymore. A transaction takes less than 10 seconds to complete.
Mr. Binny Bansal, Group CEO and Co-founder, Flipkart said, “UPI is a watershed moment in the digital payments industry, not just in India but worldwide. I’m thrilled that PhonePe and YES Bank are working together closely to spearhead the digital payments revolution in India.”
Speaking about the partnership, Mr. Rana Kapoor, MD & CEO, YES BANK said, “YES BANK is pleased to partner PhonePe and flag off the UPI-based payments revolution in India. Building on the strengths of YES BANK’s banking innovations and Flipkart group’s leadership as India’s largest e-commerce player, I am certain that this partnership will play a vital role in helping reduce cash in our economy and spurring the Digital Payments architecture in India”
PhonePe App users can send or request money to friends and family, without knowing the beneficiary’s bank account details. PhonePe users can transfer money to each other by entering a recipient’s mobile number or their virtual private address (VPA). The PhonePe App also offers bill-split, mobile recharge and utility bill payment features. The 75 Million registered customers of Flipkart, Myntra and Jabong will soon be able to pay for all their online shopping using PhonePe as well. PhonePe also offers its customers a digital wallet that can only be topped up by refunds and cashback offers from any of its network merchants.
Speaking at the launch, Mr. Ritesh Pai, Senior President & Country Head, Digital Banking, YES BANK, added, “PhonePe and YES BANK will leverage the Unified Payments Interface to provide a hassle free, convenient payment experience to consumers across the spectrum. With Digital Payments in India expected to reach USD 500 Billion by 2020, YES BANK, Flipkart and PhonePe are ready to grab a lion’s share of this market.”