PhonePe debuts at ONDC: Here’s why the Walmart-owned fintech major’s move is one to watch out for
Walmart-owned fintech major PhonePe has entered the world of e-commerce with the launch of its own hyperlocal app ‘Pincode’ – a new brand that serves as a buyer-side application on the burgeoning Open Network for Digital Commerce (ONDC). This is the first time in its seven-year history that PhonePe has created a brand beyond its core fintech solution, manifesting the potential that ONDC holds for the future of e-commerce in India.
Industry observers believe the arrival of players like PhonePe, a leader in the UPI space with more than 450 million registered users currently, can solve some of the challenges of ONDC, such as building mass awareness and earning consumer trust and adoption, etc. Moreover, such large consumer apps has the potential to instill greater confidence in early stage small-scale traders on the network who have been disappointed by the lack of order volumes, thereby increasing their participation in the platform.
“It is very important that we create an architecture that allows small retailers to also participate in e-commerce, and that is what ONDC will allow. I think, one way or another, the biggest gain will be in hyperlocal commerce, because now every little boy next door can participate in e-commerce,” said Nandan Nilekani, co-founder and chairman of Infosys, and a member of ONDC’s advisory advice, at the launch. Pincode, available on Google Play Store and Apple App Store, is a hyperlocal e-commerce app that connects every city’s consumers with their neighborhood stores. “ONDC was created with a vision to allow all brick-and-mortar retail businesses and service providers in the country to participate in this ongoing digital revolution, the e-commerce revolution. We feel that the way to realize this vision is to digitally connect local neighborhoods in a way that both consumers and merchants find it attractive, convenient and affordable, says Sameer Nigam, co-founder and CEO of PhonePe.
Drawing parallels with how Aadhaar-KYC played a pivotal role in driving user adoption in sectors like banking and telecom, Nilekani said ONDC as a digital public infrastructure requires strong innovators like PhonePe to take it to the masses.
With a dedicated app and a massive consumer base on its existing business lines, PhonePe aims to achieve an impressive 100,000 orders per day by the end of the year, which will set the pace for the competition and drive the network’s journey towards the tipping point.
