NE BUSINESS BUREAU
BENGALURU, JUNE 8
Walmart-owned Flipkart on Monday launched a contactless, QR–code–based payment facility for all its pay-on-delivery shipments. The payment method not only ensures greater safety for consumers at a time when they are looking to minimize personal contact; but also addresses the trust deficit that many consumers might face. 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, says a top official of the company.
The number of UPI-based payments has witnessed a steady rise over the years, with offline person-to-merchant transactions accounting for 42.5% of all UPI transactions in December 2020. The pandemic has also accelerated the adoption of UPI payments, with 2.64 billion transactions recorded in April 2021 – a 100% increase over the previous year, according to data by NPCI[1]. The new QR-based payment facility by Flipkart is expected to further reinforce consumer trust in digital transactions, enhance consumer safety and contribute to an overall increase in the adoption of digital commerce.
Commenting on this initiative, Ranjith Boyanapalli, Head – Fintech and Payments Group at Flipkart, said, “As the lines between e-commerce marketplace and fintech continue to converge, it becomes imperative to solve for customers’ evolving needs and attitudes. While the pandemic has urged several consumers to make a shift to online shopping, some trust deficit during checkout remains in pockets. With ‘pay-on-delivery’ technology, we want to ensure that customers have peace of mind with their payments and at the same time can shop within the safety of their homes.”
Flipkart’s QR-code-based feature is set to usher in a shift from regular Cash on Delivery (CoD) transactions to digital payments. Recognizing the need for simplified and easily accessible fintech solutions, Flipkart has ramped up the distribution reach of its digital offerings to enable safe payment options for shoppers across the country. The payment constructs and in-house fintech innovations of Flipkart are empowering new-to-internet customers and helping bring the next 200 million users to the platform.
