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Flipkart has reportedly acquired Bangalore-based mobile payment startup PhonePe for an undisclosed amount.
PhonePe was conceptualised in 2015 by former Flipkart employees Sameer Nigam, Burzin Engineer and Rahul Chari. The startup is a mobile payments app (to be launched) that allows users to transfer money instantly from their smartphones by using their unique identification number (Aadhaar), mobile phone number or a virtual payment address.
It claims to be building India’s 1st UPI-based app to provide a cashless and a seamless payment experience. In contrast to the present payments process, which involves entering numerous account/card details and multi-level interventions, UPI , that will go live in April, will provide a secure and hassle-free digital payments experience.
The co-founders ideated the concept while working for the ecommerce company, where they closely experienced how the complexities of existing payment methods affected both customers and businesses.
PhonePe is aimed to make digital payments easy, safe & universally accepted so that it reduces the need to carry cash or cards. The app has features through which users can pay their bills, shop and make payments to merchants, and even send or request money instantly from anyone in India using just their mobile number.
Update (1o:40 AM, 1 April)
Flipkart has confirmed that it has acquired PhonePe. Under acquisition terms, PhonePe team will move to Flipkart but will function as an independent business unit.
Binny Bansal, CEO of Flipkart, said, “Payments has been one of the biggest hurdles for mass adoption of online shopping in India. UPI has the potential of transforming the entire payments ecosystem in the country. The acquisition of PhonePe is in-line with Flipkart’s focus on driving innovation on the payments front. I am delighted that two Flipkart veterans – Sameer and Rahul are at the helm of this initiative.”
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