Published on : Jul 20, 2017
PhonePe- a Flipkart owned platform is gearing to venture into the offline space, where Paytm has already achieved prominence. PhonePe as per reports will lend short-term loans and credits to customers besides installing point of sale machines for offline merchants to ensure hindrance free payment process.
PhonePe, acquired by Flipkart in 2016, was the first company to have gotten onboard the Unified Payment Interface, where it claims to account for nearly 40% of the overall trasactions conducted in a given year. PhonePe has commenced its offline foray by beginning operations in Bengaluru. In the next couple of months, it is looking to expand its footprint across the top six cities in India. Presently, a lion’s share of transaction taken care of PhonePe comes from Flipkart and its ancillary companies. However, in the forthcoming years it plans to bring at leadt 30,000 to 40,000 offline merchants on board.
Business Strategies Aimed toward Gaining Edge over Competitors
The head of business development Pradeep Dodle in one is recent interviews revealed that the company is primarily targeting large players in the offline market, besides smaller merchants such as tea sellers and others. He further revealed that the company has already partnered with brands such as Café Coffee Day, Barista, KFC, and Metro Cash & Carry besides others. As per the latest reports, the company has already setup interoperable UPI quick response and code based modes of payments.
In the meantime, possibly the PhonePe’s leading rival Paytm has already raised a hefty sum from SoftBank and is aggressively expanding its offline operations by providing special discounts to customers. Besides this, repeat transaction and customer acquisition are popular strategies adopted by companies operating in the offline space to gain a competitive edge.