Following YES Bank and Flipkart’s PhonePe, Freecharge on Monday became the latest digital payments company to launch a Unified Payments Interface (UPI) app along with Axis Bank.
Freecharge CEO Govind Rajan said UPI would make banking experience for customers seamless. It would not only transform payments, but also commerce by connecting customers and merchants in a secure ecosystem. “We hope that the success rates would be a quantum jump over the payment gateway experience,” he said in a statement.
Customers can create multiple handles or virtual payment address (VPA) on the Freecharge UPI app and link it to their bank accounts. When the customer makes the payment using his handle or Axis Bank’s VPA, he will be transferring money from his bank account to the merchant or beneficiary account without exposing the customer account details such as account number, IFSC code, etc.
Freecharge is also driving registrations through other channels such as e-mails, notifications and campaigns.
The UPI, launched by the National Payments Corporation of India in August, allows customers to make easy bank transfers on their smartphones and without entering bank account details. The interface gained 1.75 lakh active users within the first ten days of its launch, and is being offered by many major lenders including ICICI, Axis Bank, Yes Bank
and Andhra Bank. Analysts have said mobile wallets will eventually join the platform and further spur growth among users.
Freecharge, which was bought by e-commerce player Snapdeal in April last year, said it has been pushing for accelerated adoption of mobile wallets in India. “Today, banks are witnessing about 50% of their transactions through digital channels, which show that the customer is ready to go digital,” the company said.