Flipkart launches contactless QR-code based payment facility amidst COVID-19

Flipkart — India’s leading ecommerce marketplace — on Monday launched a contactless, QR-code-based payment facility for all its pay-on-delivery shipments to minimise personal contact amidst the COVID-19 pandemic.

According to a statement from Flipkart, consumers who earlier opted for cash on delivery can now use this facility, scan the QR code attached to their purchase, and make a digital payment for their order through any UPI app at the time of delivery.

Ranjith Boyanapalli, Head – Fintech and Payments Group, Flipkart, said, “As the lines between ecommerce marketplace and fintech continue to converge, it becomes imperative to solve for customers' evolving needs and attitudes.”

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According to the Flipkart executive, the pandemic witnessed a shift to online shopping, but there was a trust deficit while making payments.

Flipkart's new QR-based payment facility is expected to reinforce this consumer trust in digital transactions, enhance consumer safety, and contribute to an overall increase in the adoption of digital commerce, the Bengaluru-headquartered company said.

The company's QR-code-based feature is set to usher in a shift from regular cash on delivery (CoD) transactions to digital payments.

Over the years, the ecommerce giant has witnessed a steady rise in UPI-based payments, with offline person-to-merchant transactions accounting for 42.5 percent of all UPI transactions in December 2020, Flipkart noted.

Moreover, the pandemic also accelerated the adoption of UPI payments, with 2.64 billion transactions recorded in April 2021 — a 100 percent increase over the previous year, according to data by NPCI.

The crucial payment infrastructure for the Indian ecommerce industry has witnessed a sea change over the years. In the early days of the industry, when there was a general hesitancy among the consumers to adopt the online mode of transaction, the industry innovated to bring in the 'cash on delivery' concept to improve the trust levels among consumers.

However, now shift has been to the other side with increased adoption of digital transactions.