Flipkart Launches UPI Service: Know how to Use it

In a significant move, e-commerce giant Flipkart has entered the digital payments space with the launch of its own Unified Payments Interface (UPI) service. This new service, dubbed “Flipkart UPI,” allows users to create their own UPI handle and make seamless online and offline payments directly within the Flipkart app, as well as for transactions outside the platform. This development marks a strategic step for Flipkart as it seeks to reduce its reliance on third-party payment applications and offer a more integrated user experience.

In Short:

• Flipkart partners with Axis Bank to launch its UPI service.
• The service allows payments within the app, money transfers, and bill payments.
• The launch is seen as a strategic move to expand its presence in the digital payments sector.

What is Flipkart’s UPI Service?

Flipkart’s UPI service, a product of its partnership with Axis Bank, is a digital payment platform integrated within the Flipkart app. It not only facilitates online shopping payments but also allows users to transfer money to local vendors, friends, and family. The transfers can be made using various identifiers such as UPI ID, phone numbers, or QR codes. This service is a significant step in enhancing the digital payment experience for Flipkart users.

How does Flipkart UPI Work?

Flipkart UPI lets you create a unique “@fkaxis” handle linked to your bank account. This handle works like those offered by PhonePe or Google Pay. You can then use it for:

1. Flipkart purchases: Pay for your shopping directly within the app, skipping separate payment apps.
2. Offline payments: Scan QR codes at merchants accepting UPI to make payments in stores and other locations.
3. Bill payments: Pay your utility bills and recharge your phone directly through Flipkart UPI.

It’s still early days, but Flipkart might offer rewards for using their service, making it potentially beneficial for frequent Flipkart users.

How to Use Flipkart UPI Service

Here are the steps to use Flipkart’s UPI service:

Step 1: Update the App

Make sure you have the latest version of the Flipkart app installed on your device.

Step 2: Open the App

Launch the Flipkart app.

Step 3: Find the UPI Section

Look for the ‘Flipkart UPI’ banner within the app.

Step 4: Link Bank Account

Follow the prompts to link your bank account.

Step 5: Start Transacting

Once your bank account is linked, you can start making payments or transferring money using the service.

Remember, you can make payments using UPI ID, phone numbers, or QR codes.

Why is Flipkart Launching its own UPI Service?

There are several potential reasons behind Flipkart’s foray into the UPI space:

1. Reduced reliance on third-party apps: By offering its own UPI service, Flipkart can decrease its dependence on third-party payment processors like PhonePe, Google Pay, and Paytm. This not only reduces transaction fees associated with using these platforms but also allows Flipkart to maintain greater control over the user experience within its ecosystem.
2. Enhanced user experience: Integrating UPI directly within the Flipkart app creates a more streamlined and convenient experience for users. They can now browse, select products, and complete their purchases seamlessly without leaving the Flipkart platform. This can potentially lead to increased user satisfaction and engagement.
3. Data and user insights: By offering its own UPI service, Flipkart can potentially gain valuable data and insights into user spending habits and preferences. This data can be leveraged to personalize product recommendations, offer targeted promotions, and improve the overall user experience within the Flipkart ecosystem.

Flipkart UPI vs Other Existing UPI Apps

UPI Service	Integration	Unique Features	Convenience Fee	Instant Refunds	User Base	Strategic Move	Bank Collaboration
Flipkart UPI	Integrated within the Flipkart app. Extends to Flipkart group companies	Supercoins, Cashback, Brand Vouchers, Milestone benefits	No	Yes	Over 500 million registered users	To compete with Amazon Pay, Paytm, Google Pay, and PhonePe	Axis Bank
PhonePe	Standalone app	Cashback and vouchers	Yes	Not specified	Large user base	Initially owned by Flipkart, separated in December 2022	Yes
Google Pay	Standalone app	Cashback and vouchers	Yes	Not specified	Large user base	Independent	Yes
Amazon Pay	Integrated within the Amazon app	Cashback and vouchers	Yes	Not specified	Large user base	To compete with Flipkart, Paytm, Google Pay, and PhonePe	Yes
Paytm	Standalone app	Cashback and vouchers	Yes	Not specified	Large user base	Independent	Yes

How Secure is Flipkart UPI?

Security is a major concern when it comes to digital transactions. Flipkart UPI leverages the existing UPI infrastructure, which is known for its robust security features. Here’s a breakdown of the security measures you can expect:

1. Two-factor authentication (2FA): Just like other UPI apps, Flipkart UPI likely utilizes 2FA for added security. This means you’ll need both your UPI PIN and a one-time password (OTP) received on your phone to authorize transactions.
2. Encrypted communication: Data transmission between your device, Flipkart’s servers, and the bank’s system is likely encrypted using industry-standard protocols, making it difficult for unauthorized parties to intercept sensitive information.
3. Secure PIN: Users will set their own unique UPI PIN to authorize transactions, adding another layer of security.

It’s important to remember that security is a shared responsibility. Here are some additional tips to stay safe while using Flipkart UPI:

• Never share your UPI PIN with anyone: This PIN is like your ATM PIN and should be kept confidential.
• Beware of phishing attempts: Don’t click on suspicious links or enter your UPI PIN on unknown websites or apps.
• Report any suspicious activity: If you notice any unauthorized transactions or suspicious activity on your account, report it to Flipkart and your bank immediately.

Conclusion

Flipkart’s entry into the UPI space signifies a bold move in the ever-evolving Indian digital payments landscape. While it’s still early to determine its long-term impact, Flipkart UPI offers potential benefits like convenience, rewards, and a seamless experience within the Flipkart ecosystem. However, gaining user trust, overcoming competition, and expanding functionality will be crucial for its success. As the service evolves, users will be watching closely to see if Flipkart UPI can carve out a niche in the competitive world of digital payments.

FAQs

What is the UPI limit on Flipkart?

As of now, the specific UPI transaction limit for Flipkart’s UPI service has not been publicly disclosed.

Can I use Flipkart UPI with any bank account?

Yes, users with any bank account can create a new UPI ID on Flipkart for free of cost.

Is Flipkart UPI available for iOS users?

Currently, Flipkart’s UPI service is initially available exclusively for Android users. The availability of iOS users is expected in the future.