PhonePe, digital payments arm of Indian e-commerce giant Flipkart, has partnered with PayU, in order to get listed as a payment mode for all the merchants using the payment gateway for online transactions.
This partnership will help PhonePe to expand its online merchant base as it leverages the PayU network.
PhonePe will have access to more than 4,00,000 merchants using PayU payment services, on the other hand, PhonePe is looking to give discounts and promotional offers for its 100 million user base on transactions at PayU merchants, thereby, giving PayU access to more customers.
Talking about the partnership, Karthik Raghupathy, Head of Strategy and Planning at PhonePe, said, “We are extremely delighted to partner with PayU which has been a trusted payment gateway for online merchants across India. This partnership is another example of the value PhonePe places on growing the digital payment ecosystem,”
He further added, “This partnership will also help us in significantly expanding our online merchant network. PayU and PhonePe also share a common vision of making UPI transactions ubiquitous in India, and this tie-up is a big step forward in that direction.”
The partnership is already bearing fruits for the digital payments platform, as it has integrated 15,000 merchants on the PayU network and has reported 2,00,000 new customers using its platform, constituting around 4,00,000 transactions.
PayU has been trying to strengthen its position in the Indian fintech industry with a clutch of investments and partnerships in the last few months.
Last month, PayU invested in a fintech startup ZestMoney, to help it raise 94 crores in a round led by Xiaomi. It also partnered with Reliance Money, to offer app-based loans.
In July, PayU launched PayUnow, a platform to enable Indian offline merchants to establish an online presence.