PhonePe Partners with PickMe to Offer UPI Payments for Indians in Sri Lanka

The Indian digital payment company PhonePe has announced a partnership with Sri Lankan ride-hailing platform PickMe. This collaboration allows Indian travelers in Sri Lanka to use PhonePe’s UPI payment option to pay for PickMe rides, enabling cashless transactions and enhancing travel convenience.

Background and Launch

This partnership follows the recent launch of PhonePe in Sri Lanka, supported by Indian High Commissioner H.E. Santosh Jha, who advocated for collaboration between Sri Lankan and Indian companies to build the UPI network. The move is part of PhonePe’s strategy to expand its international presence and cater to the growing number of Indian tourists visiting Sri Lanka.

Enhanced Travel Experience

Jiffry Zulfer, CEO of PickMe, highlighted that PickMe is currently the only ride-hailing service in Sri Lanka offering UPI payments for Indian travelers. This service aims to make transportation in Sri Lanka more convenient, safe, and cost-effective. By integrating QR payments, PickMe enhances travel ease for tourists and provides additional revenue for drivers.

Strategic Benefits for PhonePe

Ritesh Pai, CEO of International Payments at PhonePe, emphasized the company’s commitment to providing Indian travelers with secure and convenient payment solutions. This partnership is expected to increase transaction volumes and user retention for PhonePe. It aligns with PhonePe’s broader strategy of diversifying its product offerings and expanding its footprint in international markets.

Recent Expansion Efforts

PhonePe’s collaboration with PickMe is part of a series of recent expansions. In April, PhonePe partnered with the Singapore Tourism Board to enable UPI payments for Indian visitors in Singapore. Domestically, PhonePe has launched secured lending products and entered the merchant lending space, collaborating with banks, non-banking financial companies (NBFCs), and other fintech firms.

Financial Performance

In FY23, PhonePe’s operating revenue surged 77% year-on-year to INR 2,914 crore, while its net loss increased by 39% to INR 2,795.3 crore. Despite the losses, PhonePe continues to dominate the UPI ecosystem in India, holding a 48.87% market share as of May.

Piyush Shukla

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