PhonePe Business Model: New Way Of Doing Cashless Transactions

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PhonePe Business Model New Way Of Doing Cashless
Transactions

• Online payments are the new way of transaction,
  as the cashless thing came into existence online
  payment start gaining the interest of the people
  and get success in the market. Online payment is
  so convenient to people, nowadays that everybody
  wants to get all their work done while sitting on
  a chair, no need to go anywhere or stand in lines
  for hours, the online payment apps take care of
  all your needs.

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• FxMart received its license to operate on 26
  August 2014. Phonepe was incorporated in December
  2015. The company was acquired by Flipkart in
  April 2016 and as part of the Flipkart
  acquisition, the FxMart license was transferred
  to PhonePe and it was rebranded as the Phonpe
  Wallet. Founder of PhonePe Sameer Nigam was
  appointed as the CEO of the company.
• The company was partnered with YES Bank in August
  2016, then launched the UPI-based mobile payment
  app, based on a government-backed UPI platform.
• In the time of 3 months, the app was downloaded
  by more than 10 million users, in 2018 PhonePe
  become one of the fastest Indian payment apps to
  get a 50 million badge on the Google play store.
  IN August 2017 PhonePe took over the BHIM and
  emerge as one of the market leaders in UPI
  transactions.

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The PhonePe Business Model

• Phone pay was founded by Sameer Nigam, Rahul
  Chari, and Burzin Engineer in December 2015. The
  PhonePe app, based on the Unified Payments
  Interface (UPI), went live in August 2016.
• PhonePe is an Indian digital payments and
  financial services company headquartered in
  Bangalore, India.
• Phonepe is available in more than 11 Indian
  languages and accepted as a payment option at
  over 17.5 million offline and online merchant
  outlets across 500 cities all over India covering
  the area of food, travel, groceries, medicines,
  movie tickets.
• Users of PhonePe can send and receive money,
  recharge mobile, DTH, data cards, pay to shops,
  invest in tax saving funds, liquid funds, by
  insurance and mutual funds, and gold can make
  utility payments.
• More than this phone pay allows users to book Ola
  rides, pay for travel tickets, and book flights
  and hotels.
• Phonepe is licensed by the Reserve Bank of India
  for issuance and operation of a Semi-closed
  prepaid payment system with authorization number
  75/2014 dated 22 August 2014.

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COMPETITORS

• Just like every clothing, footwear, beauty
  products, etc. have different brands and
  competitors, online payment apps also have
  different players, some of them are mentioned
  below.
• Paytm
• Paytm is one of the very known online payment
  apps. More than 20 million merchants all over
  India use their QR code payment system to accept
  payments directly into their bank account. The
  company also uses advertisements, paid
  promotional content to generate revenues.
• Googlepay.
• Google Pay is an online payment system developed
  by Google, enabling users to make payments with
  Android phones, tablets, or watches.
• The USP of Google Pay is that it supports passes
  suggest coupons, boarding passes former campus ID
  cards, car keys, event tickets, movie tickets,
  public transportation tickets, store cards, and
  loyalty cards which make Google Pay a compotator
  to the PhonePe business model.
• Mobikwik.
• Mobikwik is one of Indias largest digital
  payment platforms which is serving more than 12
  crore users with a quick transaction, mobile
  transfer, cell credit service, and much more.
• Mobikwik enables better engagement of businesses
  with individuals through multiple options of
  online bill payment modes. It has grown over the
  years to build a smooth, safe and secure platform
  for a hassle-free experience for users.
• Razorpay.
• Razorpay is the only payment solution in India
  that allows businesses to accept, process, and
  disburse payments with its products suite. It
  gives users access to all payment modes including
  credit card, debit card, net banking, UPI, and
  popular wallets including jio money, movie quick,
  Airtel money, free charge, Ola money, and
  payZapp.
• Paypal.
• Through a combination of technological innovation
  and strategic partnerships, PayPal creates better
  ways to manage and move money and offers choice
  and flexibility when sending payments, paying, or
  getting paid.
• Available over 200 markets around the globe,
  including Braintree, Venmo, and Xoom, enable
  consumers and merchants to receive money over 100
  currencies, withdraw funds in 56 currencies, and
  hold balances in their PayPal accounts in 25
  currencies.

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CONCLUSION

• Win the best mobile payment service category and
  the technology category at IAMAI India digital
  awards.
• The phone pay ATM goes live across 10 Lac stores
  in 300 cities.
• Launches liquid funds, super funds and seven more
  curated mutual fund category products.
• Launches travel insurance, coronavirus insurance,
  and motor insurance insurance offerings.
• Becomes Indias fastest-growing insuretech
  distributor with the sale of five lakhs policies
  in five months.
• Gross is the 250,000,000 registered users, the
  market-leading share of over 40 in UPI
  transactions.

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