Flipkart, Paytm partner ahead of The Big Billion Days sale; to democratise digital payments for all
In a curious development, Walmart-owned Flipkart on Monday said it has partnered with fintech unicorn Paytm ahead of its The Big Billion Days sale. Under this partnership, Flipkart shoppers will be able to pay through Paytm’s digital payment channels.
The development comes even as the Flipkart Group has its own digital payment platform – PhonePe. According to the Indian ecommerce giant, this partnership is well-aligned with Flipkart's preparation ahead of the upcoming festival, where it expects a huge surge in orders across the country.
Commenting on the partnership, Ranjith Boyanapalli, Head - Fintech and Payments Group, Flipkart, said, “Our partnership with Paytm showcases our commitment to make digital payment solutions customer-centric and inclusive, democratising digital payments for all. This festive season, millions of Paytm users across the country will have access to their wallets and UPI on Flipkart.”
On the other hand, Madhur Deora, President - Paytm, said, "It is great to see two technology companies collaborating to offer seamless shopping and payment experience. Flipkart has championed ecommerce in India, and together we aim to replace cash on delivery with digital payments via Paytm Wallet and Paytm Bank account.”
In a statement, Flipkart said that the Digital India mission requires the collective responsibility of homegrown players to build interconnected business ecosystems. It further stated that the addition of Paytm’s Wallet and Paytm UPI offers a seamless one-click checkout experience to Flipkart shoppers during their purchase on the ecommerce app.
According to the latest data published by the Reserve Bank of India (RBI), the total number of digital transactions in India that are processed via any electronic mode — be it UPI, IMPS, debit and credit cards, etc. — is expected to reach a daily average of 1.5 billion in the next five years.
Consequently, the net value of digital payments in India will also increase from its current value of Rs 5 trillion to Rs 15 trillion by 2025.
“Partnerships such as this will further boost the uptake of digital transactions as India continues to stay indoors and maintain social distancing,” the ecommerce company said.