Fascinatingly, in only two months, UPI payments on Sachin Bansal's finance platform Navi, cofounder of Flipkart, have increased by a factor of ten. Bansal had a key role in Flipkart purchasing PhonePe.
To further its financial goals, e-commerce behemoth Flipkart has released the Super.Money Unified Payments Interface (UPI) app. The Walmart-backed business has its own UPI name on the shopping app, and the introduction of a different app shows how serious the corporation is about making a move into the financial market.
Remarkably, PhonePe, the former group business that is mostly controlled by Walmart, barely split from Flipkart a year ago and is now a market leader in the UPI ecosystem with around half of the market.
Super.Money is considering a phased rollout, including a beta program that is reportedly limited to one lakh participants at launch. The company's logo prominently displays a QR code, which is a well-liked UPI payment mechanism.
When paying for meals, flights, and other merchant purchases using the app, users may earn up to 5% cashback. Fantastic.Money's advertisements also aim to poke fun at competitors that provide cash, scratch cards, or freebies in exchange for UPI payments.
With more than five million transactions in March, Flipkart's own UPI account, which was introduced in March, had a successful debut.
The majority of UPI players offered cashbacks in the early going to gain market share, but this strategy has since backfired as users have focused their preferences on just three apps: Paytm, PhonePe, and Google Pay. These three apps collectively account for more than 95% of the market share in the UPI ecosystem.
The introduction of Super.Money coincides with worries that UPI would solidify into a duopoly. The National Payments Corporation of India (NPCI), which manages UPI, has been asked by the smaller UPI companies to provide them special status so they can compete with the big three firms.
Paytm, the third-largest participant, saw a decline in its market share from around 13 percent in May of last year to approximately 8 percent as a result of regulatory action taken against Paytm Payments Bank, an affiliate firm.
In 2020, PhonePe separated from Flipkart after being nurtured there. Flipkart has long desired to have its own payment platform, but due of PhonePe, it did not introduce any new products. However, since the latter was divided off, it has returned to the area.
It's interesting to note that Navi, the finance app developed by Sachin Bansal, the cofounder of Flipkart, has grown ten times in only two months and offers incentives and cashbacks for using UPI. Bansal had a key role in Flipkart purchasing PhonePe.
No comments:
Post a Comment