The world is quickly progressing towards a digital era. Everything from groceries to cell phones can now be made available at the click of a button. Quite literally. This has been made possible by the advancement in the e-commerce which has changed the way we shop. Analyzing the growing trend of online shopping the idea of e-wallet or digital wallet originated, which not only made shopping online convenient but removed the need to carry cash to your grocer’s store. With the e-wallets you could simply transfer cash from your account to the receivers account without any actual money changing hands. The only requirement being; that both the sender and receiver have the same e-wallet.
What is a Digital Wallet?
To put it simply, digital wallet is an electronic device which permits an individual to make monetary transactions electronically. This can be done either via computer or with smartphones. At the time this concept was introduced, an individual normally had to transfer money from their bank account to the digital wallet account in the same manner that we make online payments. However, now there is an option to link your bank account to the e-wallet and avoid the long process.
Server Side Digital Wallet
A server-side wallet is a digital wallet which an organization creates for you. It contains your basic details such as your name, billing address, mode of payment which includes your card details such as credit/debit, expiry date, etc. Due to its convenience when it comes to online shopping, a server-side digital wallet is the first preference of the retailers wherein the organization can store the database of user-input information. Not to mention it is highly secure and enjoys end-user satisfaction. After several high-end online retailers came out with e-wallet, Flipkart also decided to launch its e-wallet in the year 2016. The Flipkart wallet is called Flipkart Money.
Flipkart Money by Flipkart
The Flipkart wallet first introduced a service called Flipkart Money which is powered by FX Mart a company in which Flipkart acquired a majority stake for a sum of 48.5 crore rupees. FX Mart has the license from RBI to operate a prepaid payment instrument till the year 2019. This development by India’s top e-commerce player, Flipkart, came at a time when e-wallets like PayTm and MobiKwik are already dominating the market for digital wallets. When Flipkart Money was launched, it was only available for the android users, but the de-monetization drive proved game changer and Flipkart money moved its Flipkart money wallet to PhonePe.
PhonePe App by Flipkart
As soon as the demonetization woes hit the country, Flipkart wasted no time in coming up with an app which worked as Flipkart wallet for the users of Flipkart. This time around they came out with an app which was conducive to both Android and iOS.
The latest Flipkart wallet was launched in partnership with YES Bank and is powered by FX Mart. The app allows you to link your bank accounts to your smartphone securely via encrypted software of the National Payments Corporation of India.
Key Features of PhonePe App
The Flipkart wallet PhonePe is being touted as one of the revolutionary methods which can transform the way India carries cash. Some of the key features of the PhonePe app are listed below:
India’s First UPI App
PhonePe is among one of the first apps to be backed by government Unified Payment Interface or UPI platform. Built on the Immediate Payment Service (IMPS) infrastructure, UPI allows monetary transactions between two parties through their bank accounts using unique identifiers such as a mobile number or a unique address, also called VPA. The app does not use IFSC or account details.
Works without Bank Account Details
The best part about this Flipkart wallet is the fact that you need not share your crucial information such as bank details or IFSC code which makes the dealing secure and guarded. Approximately 30 banks are active on the UPI platform including government banks like SBI and private banks like HDFC. All the user needs to do is link its account with UPI and verify the details including the mobile number. UPI then will retrieve your account details through a secure channel each time you make a transaction. It should be noted that if your bank is not live with UPI, you cannot link your PhonePe app with your account. However, you are still entitled to receive the refunds from Myntra/Flipkart.
One-Time Authentication Method
PhonePe completely eradicates multiple authentications. With this app, you can directly transfer money from your bank account to the receiver’s, without entering your card details or OTPs for completing the transactions. The same applies to paying to online as well as offline vendors.
No More Constant Top Ups
The advantage of having your account linked with the app is that the constant itch of topping up your app account no longer exists. Once your account is linked, you need not worry about running out of funds as the money is sourced directly from your bank account.
Easy Payments, Recharge, and Transfer
Once your account is linked to PhonePe, you do not have to worry about taking any physical efforts to pay your bills. Just log on to the app, select the requisite icon and make the payments.
Per Transaction Limit Increased
Since your app is linked to your bank account, it is understood that your payments can be of higher value and run into tens of thousands, depending upon the nature of your business. For this purpose, the single transaction limit of PhonePe has been raised up to one lakh rupees. Add to that the longevity of your wallet balance. Even if you make two transactions per year, your account will remain active.
Finally, the fact that it uses government backed platform for all its transactions, one can be assured of its genuineness and safety.
How To Use PhonePe App?
Now that we have understood all the necessary details about the revolutionary Flipkart wallet PhonePe, all that remains is to understand how to use it.
All you need to do is follow these steps:
PhonePe is available on Google Play as well as App Store. Android users may download it from Google play, and Apple users can download it from App Store. It is downloadable free of charge.
Once downloaded, tap on the ‘open’ option of the app and feed in your mobile number to be verified. Please note that the mobile number that you verify should be the same as registered with your bank account.
Next step is to feed in your basic detail, viz. name, email address and the 4-digit password to activate your wallet.
Once activated, click on ‘Create New VPA’
Now you just need to link your bank account to the app by selecting your bank. The app will retrieve the relevant details.
Once you have confirmed these details, you are all set to use the wallet.
PhonePe is claimed as one of the fastest growing modes of e-wallet. With the sound government backing and ease of transactions, it has become the favorite of those who look for time-saving and efficient monetary transactions.