Freecharge has partnered with Axis Bank to launch Unified Payments Interface (UPI) enabled payment on its Android app. UPI will enable instant seamless transactions from a smartphone using a virtual payment address (VPA).
Consumers will be able to create a virtual address on the Freecharge Android app and link it to their bank account to register on the UPI platform. This feature will allow consumers to pay on Freecharge in a secure and swifter way for transactions in the first phase and over the next few weeks. Since this option is only available on the new version of Android app, users will have to upgrade to the latest version of the Android app to see this option while doing recharges/bill/utility payments.
Commenting on the launch, Mr. Govind Rajan, CEO, Freecharge said, “We are very excited to be one of the first players to launch the UPI rails in partnership with AXIS Bank. The partnership allows Freecharge users to pay for transactions from their bank accounts and they don't have to be existing customers of Axis Bank. With UPI we believe that customers will have a more seamless banking experience and we hope that the success rates would be a quantum jump over the Payment Gateway experience. In addition, UPI will transform not just payments but commerce by connecting consumers and merchants in a secure ecosystem.”
Mr. Sangram Singh , Head Cards & Payments , Axis Bank said, “ Axis Bank is committed to make cashless payments simpler for customers and UPI is an ideal platform in that direction. We are delighted to partner with Freecharge to offer customers a seamless experience and help make UPI payments accessible to millions of users of Freecharge. We view this as an important collaboration to kick start UPI adoption by millions of users”.
Customers can create multiple handles/VPA linked to their bank accounts. When the customer makes the payment using his handle or Axis Bank’s VPA, he will be transferring money from his bank account to the merchant or beneficiary account without exposing the customer account details such as account number, IFSC code etc. The merchant or beneficiary will only be able to see the customer VPA in this process.
Consumers can register for UPI through Freecharge app. Freecharge will also be driving registrations through other channels such as e-mails, notifications and campaigns.
UPI enables low cost, high-volume payments and creates a new ecosystem where customers and merchants will come together for faster and simpler electronic payments. UPI eliminates the need for merchants to be PCI - DSS certified to store customers' payment credentials as the Virtual Payment Address can be stored against the customers' login.
Today, banks are witnessing about 50% of their transactions through digital channels which shows that the customer is ready to go digital. Freecharge aims to accelerate the adoption of mobile wallets and elevate the digital transaction experience by inculcating a habit to fast track India into a less cash economy.