India’s e-commerce major Flipkart, in a bid to foray into the payments business, has launched an online wallet, Flipkart Money. The online wallet will directly compete with Alibaba-backed Paytm and Snapdeal’s Freecharge.
Flipkart Money will help the firm increase the proportion of cashless transactions, and cut operational costs involved with cash on delivery payments.
Flipkart has been lately trying to expand its core business of online commerce. It has even launched its own ads platform, Brand Story Ads, and has opened up its logistics platform EKart to other e-commerce players in an attempt to monetize newer avenues.
The online wallet has been launched 18 months after Flipkart shut down its old payments gateway, PayZippy. Flipkart’s acquisition of payments services start-up, FX Mart Pvt Ltd, in September 2015 has prompted the relaunch of the online wallet. FX Mart Pvt. Ltd already has a prepaid wallet licence.
Flipkart Money has been launched on Android devices right now, where it can be topped up with Rs 10,000 at a time using credit card, debit card and net banking. It is expected to be helpful for quick refunds and single click payments on the platform.