E-commerce company Flipkart on Friday said it has acquired Unified Payments Interface (UPI) startup PhonePe, which was founded by its former employees.
PhonePe, founded by Sameer Nigam and Rahul Chari, allows users to transact with a unique identification and mobile phone number or virtual payment address, eliminating the need to share other voluminous banking details.
"In contrast to the present payments process, which involves entering numerous account/card details and multi-level interventions, UPI will provide a highly secure hassle-free digital payments experience," said a Flipkart statement.
Without specifying the acquisition value, Flipkart CEO Binny Bansal said, "Payment has been one of the biggest hurdles for mass adoption of online shopping in India. UPI has the potential of transforming the entire payments ecosystem in the country."
Scheduled to go live in April, PhonePe will transition into Flipkart but will operate as an independent business unit, the statement added.