Flipkart today launched PhonePe, a UPI based mobile payments app to take on Paytm and Freecharge. Flipkart aims at over $1 billion in transactions by this year-end through the app.PhonePe is integrated with the new Unified Payment Interface (UPI), allowing users to directly transact from their bank account and not store funds in their mobile wallet.


Flipkart had acquired PhonePe in April and then adopted UPI, which aims to make individual wallets irrelevant.Since then, Flipkart has redesigned the product and entered into a strategic tie-up with YES Bank, to convert PhonePe into a bank-backed wallet that allows users to do peer-to-peer transactions, buy goods or pay bills.

Flipkart PhonePe

PhonePe is a brand owned by FX Mart Pvt Ltd. It is licensed by the Reserve Bank of India for issuance and operation of a Semi Closed Prepaid Payment system.You can now redeem your wallet balance on Flipkart, Myntra and many other websites and mobile apps.

PhonePe is India’s 1st UPI-based mobile payments app. UPI (Unified Payments Interface) is a revolutionary new way of transferring money to friends and family, directly from your bank account. PhonePe is both 100% secure and lightning fast. No OTP code hassles. No need to enter bank details to transfer money. No need to top up wallets either. Just link a bank account to your PhonePe App once, and pay for all your shopping directly from your bank account.

PhonePe App Features

Sameer Nigam (SVP Engineering and VP Marketing at Flipkart) and Rahul Chari (VP Engineering – Supply Chain at Flipkart) are the people behind PhonePe.

What isUnified Payments Interface (UPI)

Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the Peer to Peer collect request which can be scheduled and paid as per requirement and convenience.With the above context in mind, NPCI conducted a pilot launch with 21 member banks. The pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai.

How UPI isunique?

  • Immediate money transfer through mobile device round the clock 24×7 and 365 days.
  • Single mobile application for accessing different bank accounts
  • Single Click 2 Factor Authentication Aligned with the Regulatory guidelines, yet provides for a very strong feature of seamless single click payment.
  • Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc.
  • Bill Sharing with friends.
  • Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.
  • Merchant Payment with Single Application or In-App Payments.
  • Scheduling PUSH and PULL Payments for various purposes.
  • Utility Bill Payments, Over the Counter Payments, Bar code (Scan and Pay) based payments.
  • Donations, Collections, Disbursements Scalable.
  • Raising Complaint from Mobile App directly.

UPI – Benefits to the Ecosystem participants

Benefits of UPI

Registration in UPI enabled application

Steps for Registration:

      • User downloadsthe UPI application from the App Store / Banks website
      • User creates his/ her profile by entering details like name, virtual id (payment address), password etc.
      • User goes to Add/Link/Manage Bank Account option and links the bank and account number with the virtual id

Generating M PIN:

      • User selects the bank account from which he/she wants to initiate the transaction
      • User clicks one of the option-

a. Mobile Banking Registration/Generate MPIN

b. Change M-PIN

In the case of 2(a) –

      1. User receives OTP from the Issuer bank on his/her registered mobile number
      2. User now enters last 6 digits of Debit card number and expiry date
      3. User enters OTP and enters his preferred numeric MPIN (MPIN that he would like to set) and clicks on Submit
      4. After clicking submit, customergets notification (successful or decline)

In case of 2(b)

      1. User enters his old MPIN and preferred new MPIN (MPIN that he would like to set) and clicks on Submit
      2. After clicking submit, customergets notification (successful or failure)

Performing a UPI Transaction:

PUSH Sending money using virtual address

      1. User logs in toUPI application
      2. After successful login, user selects the option of Send Money / Payment
      3. User enters beneficiarys / Payee virtual id, amount and selects account to be debited
      4. User gets confirmation screen to review the payment details and clicks on Confirm
      5. User now enters MPIN
      6. User gets successful or failure message

PULL Requesting money

    1. User logs in to his banks UPI application
    2. After successful login, user selects the option of collect money (request for payment)
    3. User enters remitters / payers virtual id, amount and account to be credited
    4. User gets confirmation screen to review the payment details and clicks on confirm
    5. The payer will get the notification on his mobile for request money
    6. Payer now clicks on the notification and opens his banks UPI app where he reviews payment request
    7. Payer then decides to click on accept or decline
    8. In case of accept payment, payer will enter MPIN to authorize the transaction
    9. Transaction complete, payer gets successful or decline transaction notification
    10. Payee / requester gets notification and SMS from bank for credit of his bank account


Download PhonePe app from Google Playstore.