PhonePe, India’s leading digital payments platform, has announced a partnership with Walmart-owned Flipkart to launch contactless ‘Scan and Pay’ for Flipkart’s pay-on-delivery orders. The digital payment company says that its QR code solution will enable customers who earlier opted for cash on delivery to pay digitally through any UPI app at the time of delivery. This will help reduce personal contact while ensuring safety and drive contactless payments for customers who are traditionally more comfortable with cash on delivery.
Commenting on the partnership, Ankit Gaur, Director of Business at PhonePe said that digital payments adoption has become widespread over the past few years thanks to UPI’s wide adoption. “However, there still continues to be a preference for cash on delivery among some customers at the time of delivery. Digitising these cash-based payments would give a major boost to not just e-commerce but also contribute to the larger goal of Digital India," he said in a press note. PhonePe further states that its partnership with Flipkart to enable contactless and safe payments for its Pay on Delivery customers is a big step to digitise the economy. Ranjith Boyanapalli, head at Fintech and Payments Group at Flipkart also lauded the partnership, and said as the lines between e-commerce marketplace and digital payments 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," Boyanapalli added in the statement.
From the customers’ end, the process appears to be the same, and they can opt for cash on delivery (depending on the item). Upon delivery, they can ask for the digital code via which they can make an online payment at their doorstep.