Fintech major PhonePe boosting its presence across multiple key financial verticals of payments, lending, insurance, and wealth management. It is seeking to repeat its success in the United Payment Interface UPI space across various domains.
With Walmart’s support, PhonePe intends to exploit its size on UPI to generate cross-selling opportunities, a tactic frequently used by fintech businesses that cater to consumers. But PhonePe’s large user base is what makes it unique.
The present scenario is that PhonePe has more than over 500 million. They also have a merchant base of 40 million.
Deep Agrawal, head of payments at PhonePe said
“Given our strength in UPI, it makes sense for us to enable two key things: providing consumers with access to credit, and empowering merchants with higher spending capabilities through credit instruments,”.
According to company executives who spoke to Business Standard, the company is able to expand its offerings on both the consumer and merchant sides of its business thanks to digital payments like UPI and innovations from the National Payments Corporation of India (NPCI), such as RuPay credit cards, credit lines on UP, I, and UPI Lite, among others.
Agrawal also added
“For financial services like lending and insurance, these verticals would look at UPI as a payment method, enabling growth in their respective categories. UPI has been the first payment method to get many individuals to make digital foray, and hence building experiences which coexist with UPI makes a lot of sense,”.
The October report shows PhonePe had a share of 47.7% on the UPI landscape. That is the largest among a list of over 70 third-party application providers (TPAPs) aloof from the additional payment service providers (PSPs).
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