PhonePe and Flipkart join forces to digitise cash-on-delivery payments

(Image credit: Internet)

Digital payments platform PhonePe has joined hands with e-commerce platform Flipkart to enable contactless ‘Scan and Pay’ feature for the latter's pay-on-delivery orders.

PhonePe said that its dynamic QR code solution will enable customers who had chosen 'cash on delivery' to pay digitally through any UPI app at the time of delivery.

Basically, people who had opted for cash on delivery purchases on Flipkart can pay through apps like, says PhonePe or Google Pay.

COD purchases without actual involvement of currency

PhonePe said that this feature will help reduce personal contact while ensuring safety and drive contactless payments for customers who are traditionally more comfortable with cash on delivery. In that sense, it is still cash purchase without the actual involvement of currency.

"Digital payments adoption has become widespread over the past few years, thanks to UPI. However, there still continues to be a preference for cash on delivery among some customers at the time of delivery. Digitising these cash-based payments would give a major boost to not just e-commerce but also contribute to the larger goal of Digital India," said PhonePe Director (Business) Ankit Gaur said in a press release.

"Our solution not just offers a seamless and contactless payment experience to customers but also helps to reduce cash handling costs for e-commerce and logistics companies," he added.

Last December, Flipkart had hived off PhonePe as the digital payment firm raised $ 700 million in funding.

With 'pay-on-delivery' technology, Flipkart wants 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 Head (Fintech and Payments Group) Ranjith Boyanapalli said.

PhonePe had reported over 100 million active users last year.

Balakumar K
Senior Editor

Over three decades as a journalist covering current affairs, politics, sports and now technology. Former Editor of News Today, writer of humour columns across publications and a hardcore cricket and cinema enthusiast. He writes about technology trends and suggest movies and shows to watch on OTT platforms.