PhonePe and Visa Launch Cardless Payment Solutions in India and Abroad
Fintech company PhonePe has partnered with global card network Visa to introduce three cardless payment solutions. The services aim to simplify domestic and international transactions for consumers and merchants.
Walmart-backed PhonePe has announced a partnership with global payments network Visa to roll out three new cardless payment solutions. These include "Tap to Pay" for in-store purchases, "Cross Border Scan to Pay" for international transactions, and "Smart Accept" for small merchants.
The "Tap to Pay" feature allows Android users to tokenize their Visa credit or debit cards within the PhonePe app. This enables contactless payments by tapping their smartphones at compatible point-of-sale terminals. The service is being rolled out in phases and is designed to function even in low-connectivity areas.
"Cross Border Scan to Pay" will be available in 14 international markets. This feature permits users to scan Visa-supported QR codes and pay using their tokenized cards while traveling abroad. PhonePe states this makes it the first Indian app to offer Visa's cross-border QR payment functionality.
The "Smart Accept" solution enables small merchants to accept card payments directly on their smartphones by allowing customers to tap their cards or tokenized mobile wallets. This removes the need for merchants to acquire separate point-of-sale machines. Transactions made via Smart Accept will be integrated into PhonePe's merchant dashboard for reconciliation.
These new offerings build upon PhonePe's existing device tokenization solution, which securely stores tokenized card details for various payment scenarios. The partnership was unveiled at the Global Fintech Fest in Mumbai and aims to enhance the ease of international payments for Indian users.