Know PhonePe : A UPI based App from Flipkart group company!

Know PhonePe : A UPI based App from Flipkart group company!

PhonePe is UPI based App to provide a cashless and a seamless payment experience. It was launched by Flipkart to ensure cashless transactions. It was among the first to be built on top of the government backed Unified Payment’s Interface. Flipkart offers a number of discounts and offers if you connect your account to PhonePe and make payments via the app.

It was launched in partnership with YES Bank. With this e-wallet, one can link bank accounts securely to Smartphone through the encrypted software of the National Payments Corporation of India.

Features

1. Easy transfer

Without adding beneficiary, or enterning bank account details and IFSC code, one can easily transfer money from one account to the other.

2. Supports all major banks

Apart from the ongoing feud with ICICI bank, all other major banks are listed on the platform. All you have to do is enter mobile number and bank name and the app retrieves other details over a secure network.

3. Virtual Payment Address

You get a unique VPA which is all that you need to carry out transactions. No other account related details like debit or credit card information is required.

4. No top up required

Unlike other e-wallets like PayTm, you do not need to keep topping up funds in PhonePe in order to carry out transactions using the app. The app is linked to your account and all transactions can be done instantly.

5. Easy bill paying

With PhonePe, you can pay electricity and gas bills, top-up mobile, data card, DTH, and landline. You can also split a bill with someone simply by scanning the QR code.

6. Refund

Flipkart and Myntra refunds are sent directly into your PhonePe wallet. You can transfer the amount to your bank account and withdraw instantly unlike other apps that makes you shop with the refund amount.

7. Online and offline

Apart from online transactions and bill payments, you can use PhonePe with offline merchants. Bricks and mortals stores integration is still being developed.

8. Zero transaction charges

While other wallets have hidden charges, PhonePe has an added advantage that all transactions made with this app are free of transaction charges.

9. Higher limits

Using PhonePe, one can carry out a daily transaction of up to 1 lakh and monthly of 30 lakhs. There is no reason why demonetization should make your life inconvenient.

10. Secure

Transactions made via PhonePe are highly secure. In order to send money or carry out any transaction, one has to know the MPIN, which works exactly how ATM PINs work.

Feud with ICICI

ICICI bank recently blocked transactions via PhonePe citing, “a certain non-banking application is following a restrictive practice of allowing only users of its own UPI handle to make payments on its App. This is a clear violation of UPI guidelines which mandate interoperability, wherein users enjoy the freedom to choose any UPI handle to make payments. NPCI has assured us in writing that this will get corrected very soon and the concerned App will allow interoperability. As soon as this is corrected, ICICI Bank will start allowing UPI transactions to resume on this App”.

NPCI issued directives to ICICI bank to allow users to carry out transactions using PhonePe and that it will look into the issues and ensure that they are well tackled. ICICI has of yet refused to comply with the directive as the block still continues to hamper transactions.

Yes Bank has confirmed that The PhonePe app has complied with all the prerequisites as mandated by the network association. According to the makers of the app, process laid out by NPCI involves detailed certification, vulnerability assessment, penetration testing, application security, third party security audits and a host of other procedural guidelines, and that they have complied with each one of them.

Interoperatibilty still continues to be an issue and ICICI is bent that it compromises the security and is not compliant with the latest "Android Intent calls" guidelines, which allow a merchant to open a UPI application to complete the transaction.

It should be noted that none of the other UPI enabled apps including BHIM have been updated to meet these new guidelines yet.