Indian e-commerce platform Flipkart has introduced a payment feature based on quick response (QR) codes for all its pay-on-delivery shipments.
Consumers who regularly choose cash on delivery (COD) can switch to digital payments by scanning the QR code attached to their purchase using any Unified Payments Interface (UPI) app.
According to Flipkart, contactless digital payment is safe and helps address many consumers’ low trust in online transaction services.
Flipkart financial technology (fintech) and payment group head Ranjith Boyanapalli said: “As the lines between the e-commerce marketplace and fintech continue to converge, it becomes imperative to solve customers’ evolving needs and attitudes.
“While the pandemic has urged several consumers to make a shift to online shopping, some trust deficit during checkout remains in [consumers’] pockets.
“With ‘pay-on-delivery’ technology, we want to ensure that customers have peace of mind with their payments and, at the same time, can shop within the safety of their homes.”
Flipkart introduced the facility after UPI-based payments accelerated during the Covid-19 pandemic, with 2.64 billion transactions recorded in April.
According to data from the National Payments Corporation of India, offline person-to-merchant transactions accounted for 42.5% of all UPI transactions in December.
In April, 2.64 billion UPI transactions were recorded.
In a separate development, Flipkart is in talks to raise at least $3bn from investors, including SoftBank and several sovereign wealth funds, reported Bloomberg.
SoftBank is expected to invest $300m to $500m through its Vision Fund II.
In April, Flipkart expanded its Flipkart Quick hyperlocal service to six more cities in India.
The service was rolled out to Delhi, Gurgaon, Ghaziabad, Noida, Hyderabad and Pune.
Launched in Bangalore last year, Flipkart Quick offers customers greater access to products and faster delivery services.