on Sep 17, 2020)BENGALURU: In a surprising move, Flipkart has started integrating Paytm‘s e-wallet on its platform even as it continues to compete with its unit PhonePe for the high stakes online payments market. Paytm’s e-wallet and Unified Payments Interface (UPI) integration on Flipkart is already being rolled out to users gradually and it would be available to everyone eventually.
Paytm, one of the leading mobile wallets competes against Flipkart’s payment unit PhonePe in both e-wallets and fast-growing UPI payments. Both platforms have had their share of taking digs at each other in public, with the most recent one being the Yes Bank moratorium scare in March when PhonePe was unavailable for nearly 24 hours.
“They (Flipkart) will complete the roll-out before Diwali sales. One of the reasons Flipkart is on-boarding Paytm is to reduce cash-on-delivery orders in non-metro markets, where they feel Paytm e-wallet is popular,” a person aware of the matter said. While e-tailers allow multiple online payment methods , they only integrate their own e-wallets – for example Amazon Pay on Amazon India. The introduction of digital wallets by e-tailers initially was to facilitate faster payments and refunds for transactions on their platforms through a closed-loop e-wallet.
Both Flipkart and Paytm confirmed the development. “It is our continuous endeavour to work with ecosystem partners to provide customers with digital transaction possibilities. We continually focus on developing inclusive solutions and forging partnerships where necessary to enable secure, convenient and new ways of transacting online,” a Flipkart spokesperson said, without commenting on the impact on PhonePe.
“Paytm is a pioneer of the digital payment ecosystem and our efforts have started reflecting in strong adoption among small towns,” a Paytm spokesperson told TOI
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