Flipkart’s PhonePe aims 40 million monthly transactions by December
New Delhi: Flipkart-owned digital payments company, PhonePe has set a target of achieving 40 million monthly transactions by the end of this year. Currently, around 10 million transactions are recorded monthly on its platform which includes transactions using UPI (Unified Payments Interface), debit cards, credit cards and their own digital wallet.
PhonePe’s monthly transactions have grown 800% since December last year, fuelled largely by exponential growth in online merchant, mobile recharge and bill payment transactions.
Our customer base doubles every two months. So, with 10 million monthly transactions now, we have a target of reaching a 40 million figure by December. Since most of the transactions of our platform are driven by UPI, we expect that the launch of UPI 2.0 will play a major role to achieve this, Sameer Nigam, chief executive officer, PhonePe told Mint on Monday.
UPI is a payments system launched by National Payments Corp. of India (NPCI) which facilitates instant fund transfer between two bank accounts on the mobile platform without having any details of the beneficiary’s bank.
PhonePe is widely considered to be the second-most popular UPI app after Bharat Interface for Money (BHIM) app. BHIM accounts for 45% of the total UPI transactions whereas PhonePe accounts for 40%.
However, it has emerged as the largest player using UPI for merchant payments, controlling close to 80% of all transactions in that space.
We are looking forward to the launch of UPI 2.0 by end of September and working on solutions based on it. There are many features which will completely change the way payments are done now, added Nigam.
“We have an option called ‘set payment reminders’ which reminds the users to make payments that are generally recurring in nature such as payment of salaries, rent, school fees, EMIs etc. But with the new version of UPI, what reminds today will become recurring payment option tomorrow,” said Nigam.
According to Nigam, the ‘e-mandate’ feature of UPI 2.0 will open up “dozen of use cases.” The e-mandate is like a standing instruction to your bank. For instance, you could give PhonePe an e-mandate to deduct a specific amount of money directly from your bank towards payment of various recurring use-cases.
There are other interesting features such as a gifting option which lets the users set the date and time of the transfer of money much in advance. There are also some talks about introducing ATM PIN option to link bank account to the app. As of now, bank account details and a onetime password (OTP) is needed while linking of bank account to the app, he said.
Once the new version of UPI is unveiled by NPCI, the company will be updating the app which will have new features such as filters in transaction history, categorization of offers along with enhanced features surrounding UPI 2.0.
“We are getting more billers on board along with introduction of new features to lead in terms of usability and technology,” he added.
PhonePe says it has tied up with 25,000 merchants to accept UPI payments through its app, including big names such as Apollo Pharmacy, Cafe Coffee Day, Barista and Spencer’s.
Transactions using UPI rose to a record 11.4 million in July, a five-fold increase since December, according to a statement from NPCI. UPI was launched in August 2016 with 21 banks, and is currently being offered by about 53 banks.