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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 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.