PhonePe signed up with Walmart in February 2019 to enable UPI transactions at the latter’s Best Price Stores. Under this new collaboration between PhonePe and Walmart, registered members of Walmart India’s Best Price Stores across the country will now be able to pay for their purchases via the PhonePe app on their mobile phone, using Unified Payments Interface (UPI) or from a PhonePe wallet, third-party wallet, credit card or debit card. Registered members will be able to make payments with PhonePe in store, as well as via the Best Price online platform and assisted-ordering solutions.
Karthik Raghupathy, Head of Strategy and Planning, PhonePe explains how this move will benefit SME retailers shopping at Walmart India, especially since majority of them do not have digital payment options. “Even though the awareness of digital payments is low, direct bank-to-bank transfer using UPI will greatly benefit kirana stores and other small businesses who do not have a credit card, debit card or e-wallet, letting business owners save time by avoiding bank visits to transfer funds for purchases from Best Price stores,” he said.
A new entrant into India’s growing fintech space, PhonePe did over 270 million transactions in March 2019 and has grown by 300% in the last year. “We are currently live at more than three million offline merchants across 100 cities in the country. We have also partnered with all major national chains across retail categories which include, Mother Dairy, Metro Cash & Carry, Spencer’s, Apollo Pharmacy, Medplus, McDonald’s, KFC, Cafe Coffee Day, Pantaloons, Aditya Birla Fashion, Mumbai Metro, among others,” Raghupathy claimed.
What has helped PhonePe shore its offline presence is the way it has tailored its solutions based on the need of the retail merchants. These solution vary depending on the store segments wherein small merchants can use the ubiquitous QR Code solution, which requires just a feature phone to get started. The more organized merchants can use Billing POS Integrated Solutions, a PhonePe solution deployed on Pinelabs devices, QR Code Solution or the PhonePe POS Solution.
“We have also introduced a unique ‘Apps’ platform that allows other businesses/companies to have their own exclusive space on the PhonePe app. This is a part of PhonePe’s vision of being an open payments ecosystem, enabling businesses of all sizes to build and deploy apps on its platform with a unified login and payments experience for its 150 million users. Over 35 apps are currently live on PhonePe including, redBus, Goibibo Flights, and Hotels, IRCTC, AbhiBus, OlaCabs, Treebo Hotels, Myntra, Coolwinks, among others,” Raghupathy added.
Currently, 95% of payments in India are cash-based, though digital transactions are expected to reach $1 trillion by 2023, as per a report by Credit Suisse.