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PhonePe

PhonePe
PhonePe Private Limited
Private
Founded 2015; 3 years ago (2015)
Founders
Headquarters Bengaluru, Karnataka, India
Area served
India
Services Unified Payments Interface
Parent Flipkart
Website www.phonepe.com

PhonePe is a financial technology company headquartered in Bangalore, India. It was founded in December, 2015[1]. It provides an online payment system based on Unified Payments Interface (UPI), which is a new process in electronic funds transfer launched by National Payments Corporation of India (NPCI).

It is licensed by the Reserve Bank of India for issuance and operation of a Semi Closed Prepaid Payment system.[2][3]

History

PhonePe received their licence to operate on 26th August, 2014 and began its operations in December, 2015. However, in April 2016, the company was acquired by Flipkart.[4][5] Flipkart's Vice President in Marketing- Sameer Nigam was assigned as their new CEO.[6]

In August 2016, the company partnered with Yes Bank to launch a UPI-based mobile payment app, based on the government-backed UPI platform.[1][7][8]

Legal challenges

On 14th January, 2017, ICICI bank blocked PhonePe transactions, citing the reasons that it did not meet the NPCI guidelines.[9][10] Initially, on 19th January, 2017, NPCI instructed ICICI to allow UPI transactions via PhonePe[11]. During this period, Airtel too blocked PhonePe transactions on its platforms.[12]A day later, on 20th January, 2017, NPCI renounced the previous instructions citing the reason that PhonePe indeed violated the UPI norms.[13][14][15]

After this, PhonePe closed its operations on Flipkart's website,[16] to align itself with the terms stated in the updated verdict from NPCI. By February, 2017, PhonePe resolved the issues with ICICI.[17][18]

References

  1. ^ a b c d "Tech in Asia - Connecting Asia's startup ecosystem". www.techinasia.com. Retrieved 2017-02-20.
  2. ^ "Reserve Bank of India - Publications". rbi.org.in. Retrieved 2017-02-20.
  3. ^ "Terms of user | PhonePe". PhonePe.
  4. ^ Reporter, B. S. (2016-04-02). "Flipkart buys mobile payments company PhonePe for an undisclosed sum". Business Standard India. Retrieved 2017-02-20.
  5. ^ "Flipkart acquires former executive's startup PhonePe for payments push". The Economic Times. Retrieved 2017-02-20.
  6. ^ "Sameer Nigam: Executive Profile & Biography - Bloomberg". www.bloomberg.com. Retrieved 2018-05-12.
  7. ^ "7 things you must know about the PhonePe app from Flipkart". Flipkart Stories. 2017-01-02. Retrieved 2017-02-20.
  8. ^ "YES BANK and PhonePe have Partnered to Launch India's 1st UPI Based Mobile Payment App - Press Release". www.yesbank.in. Retrieved 2017-02-20.
  9. ^ Sen, Anirban (2017-01-14). "ICICI blocks PhonePe transactions in sign of banks moving to protect payments turf". Livemint. Retrieved 2017-02-20.
  10. ^ Peermohamed, Alnoor (2017-01-16). "ICICI Bank blocks transactions through Flipkart wallet PhonePe". Business Standard India. Retrieved 2017-02-20.
  11. ^ "NPCI instructs ICICI to allow UPI transactions on PhonePe immediately". The Economic Times. Retrieved 2017-02-20.
  12. ^ "After ICICI Bank, Airtel also blocks PhonePe - The Economic Times". The Economic Times. Retrieved 2017-02-20.
  13. ^ "NPCI says Flipkart's PhonePe does not follow UPI rules - The Economic Times". The Economic Times. Retrieved 2017-02-20.
  14. ^ IANS (2017-01-21). "PhonePe app in breach of UPI guidelines: NPCI". Business Standard India. Retrieved 2017-02-20.
  15. ^ PTI (2017-01-20). "PhonePe in violation of UPI norms, says NPCI in U-turn". Livemint. Retrieved 2017-02-20.
  16. ^ Nair, Vishwanath (2017-01-21). "PhonePe stops all UPI-based payments on Flipkart website". Livemint. Retrieved 2017-02-20.
  17. ^ "ICICI Bank resumes UPI transactions on PhonePe - The Economic Times". The Economic Times. Retrieved 2017-02-20.
  18. ^ "Flipkart's PhonePe resolves issues with ICICI, claims 70x growth". www.moneycontrol.com. Retrieved 2017-02-20.