Flipkart has introduced the Unified Payments Interface (UPI) app super.money as a calculated effort to increase its market share in the financial technology industry. The Walmart-backed company’s ambitious goals in the financial field are highlighted by its new app. The launch of a stand-alone app underscores the group’s intention to increase its presence in digital payments, even though Flipkart already offers a UPI handle within its shopping app.
It’s interesting to note that PhonePe, a significant UPI player that is also primarily controlled by Walmart, split out from Flipkart less than a year ago. With a massive 50% market share, PhonePe presently controls the UPI industry.
Staggered Launch and User Benefits
super.money is being released gradually, with a one lakh user restriction on the beta programme. Given how widely used QR codes are for UPI payments, the app’s logo prominently displays one. According to Flipkart, the super.money team will continuously evaluate customer input to improve the offering.
The app’s main draw is its up to 5% return on purchases made at restaurants, hotels, and other retailers. This directly challenges rival companies that offer discounts, scratch cards, or cash as incentives for UPI transactions.
Aiming for Financial Inclusion
“The landscape of digital payments and financial services is evolving rapidly, presenting incredible opportunities for innovation. super.money aims to democratise access to financial services by leveraging UPI infrastructure, which aligns with the government’s larger vision of financial inclusion,” said Prakash Sikaria, Founder and CEO of super.money. Sikaria also hinted at several upcoming products in the pipeline.
Flipkart’s own UPI handle, launched in March, saw an impressive start with over five million transactions in its debut month.
UPI Market Dynamics
Many players used cashback in the early days of UPI to entice consumers. Presently, three apps—PhonePe, Google Pay, and Paytm—receive the majority of user preference and account for over 95% of the UPI market share. Super.money’s debut coincides with worries that UPI would turn into a duopoly. In order to compete with the dominating three, smaller UPI firms have asked the National Payments Corporation of India (NPCI) for special treatment.
The third-biggest UPI participant, Paytm, saw a decline in its market share from 13% in last to about 8% in May as a result of regulatory proceedings taken against Paytm Payments Bank, an affiliate firm.
The Competitive Landscape
Flipkart originally incubated PhonePe and spun it off in 2020. Since then, Flipkart has been keen to develop its own payment platform. The separation from PhonePe allowed Flipkart to re-enter the digital payments space with super.money.
Interestingly, Flipkart cofounder Sachin Bansal’s fintech app Navi is also offering rewards and cashback for UPI usage, recording a tenfold growth in just two months. Bansal played a key role in Flipkart’s acquisition of PhonePe, making this a notable development in the competitive fintech landscape.
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