PhonePe logo

On Monday, August 29, 2016, Flipkart launched the PhonePe mobile app on Google Play Store for Android users. The app uses National Payments Corporation of India’s (NPCI’s) Unified Payments Interface (UPI) tech. It enables users to easily transfer money across bank accounts, pay for orders on Flipkart, Myntra and Jabong, and make recharges and bill payments too.

About UPI

Back in April NPCI announced the launch of UPI services, in partnership with various banks in India. Some of the top banks to have teamed up with NPCI for the service include ICICI bank, Axis bank, Bank of Baroda, Canara bank, Indian bank. More banks are on the process of enabling UPI for seamless transfer of money, pay for merchant transactions and more.

The concept is to avoid sharing of bank account numbers, IFSC codes, OTP (one time password) hassles. All one needs to do is, sign up on an UPI enabled banking partner app, register with mobile number used for banking purposes, create Virtual Private Address (VPA) and link a bank account to that address.

VPAs look like [email protected] / [email protected] / [email protected] These are a few I created with ICICI’s Pockets app and Flipkart’s PhonePe app.

Any transactions done with these addresses will debit money from or credit money to the relevant linked bank account.

These are immediate payments and are done at no extra charges.

To sign up for UPI service and generate a VPA for yourself, download your bank’s smartphone app and check for UPI intergration. If your bank app doesn’t have UPI integration yet, you can choose to sign up with Flipkart PhonePe and link your bank accounts via that.

You will be eligible to create your VPA once you download the Flipkart PhonePe app.

More on Flipkart PhonePe

The free service is available on Android for now. The iOS app is expected to launch soon. PhonePe was an indepedent company ealier, and back in April, Flipkart acquired the service, reports LiveMint. The service has tied up with YesBank for payments processes.

Get the Flipkart PhonePe Android app and sign up with the mobile number used with your bank accounts.

Once done, the app will ask you to choose the bank account of your choice and after linking the account with your PhonePe app wallet, a VPA generation process begins. Create a VPA for yourself and all transactions done under this VPA will be processed via the bank account you linked now.

You will need only a MPIN to authenticate your UPI transactions. MPIN for your VPAs are set during the setup process.

You can also make recharges and bill payments on the Flipkart PhonePe app, make payments for your shopping orders on Flipkart, Myntra, Jabong using the Flipkart PhonePe wallet money or directly from your bank accounts using the UPI integration. PhonePe wallet money can be withdrawn to bank accounts too without extra charges.

Difference on the wallets systems

Unlike wallet payments like Paytm wallet, Freecharge wallet or Mobikwik wallet, UPI enables transactions directly from and to the bank accounts.

There are no wallet topups, wallet withdrawal hassles. No OTPs to authenticate the transactions either. All you need is the MPIN which you use during the setup process.

This sure brings about a big change in the path to a cashless, digital economy in India, doesn’t it?