The largest Indian e-commerce company Flipkart is reportedly testing a digital wallet that can be used for Flipkart transactions initially. The digital wallet launched on its Android app is called Flipkart Money to take on the like of Paytm , Freecharge and others.
Flipkart Money will help Flipkart cut down on transactions times and allow it to refund money in case of cash on delivery orders more conveniently reducing the transactions charges. Flipkart recently acquired a stake in FX Mart which holds the license for prepaid payments license from RBI, the Flipkart Money is the result of that acquisition. Flipkart earlier shut down its payment gateway service PayZippy in 2014.
Currently the leader in digital wallet service Paytm has large number of users, but with Flipkart entering the space it will instant boost to its digital wallet. Flipkart has large user base and it is easy for them to convert them as their wallet users to keep them on their own platform. Flipkart with the wallet can directly make refunds to its wallet, instead of refunding to cards and banks reducing the costs.
The Flipkart Money digital wallet is currently Flipkart only that means you can’t use it elsewhere but we are hope that it will be extended to Myntra app slowly and then may be to the other services.