TBM Staff - Mumbai
Indian digital payment giant PhonePe has teamed up with Sri Lankan ride-hailing platform PickMe. This partnership enables Indian tourists in Sri Lanka to pay for PickMe rides using PhonePe’s UPI payment system, promoting cashless transactions and enhancing travel convenience.
Background and Launch
The partnership comes on the heels of PhonePe’s recent launch in Sri Lanka, which was supported by Indian High Commissioner H.E. Santosh Jha. Jha advocated for collaboration between Sri Lankan and Indian companies to develop the UPI network.
This initiative is part of PhonePe’s broader strategy to extend its international reach and serve the increasing number of Indian tourists in Sri Lanka.
Enhanced Travel Experience
Jiffry Zulfer, CEO, PickMe, noted that PickMe is currently the only ride-hailing service in Sri Lanka offering UPI payments for Indian travelers. This feature aims to make transportation in Sri Lanka more convenient, safe, and cost-effective. By integrating QR payments, PickMe simplifies travel for tourists and creates additional revenue opportunities for drivers.
Strategic Benefits for PhonePe
Ritesh Pai, CEO, International Payments at PhonePe, highlighted the company’s dedication to providing secure and convenient payment solutions for Indian travelers. The partnership is expected to boost transaction volumes and user retention for PhonePe, aligning with its strategy to diversify product offerings and expand its international presence.
Recent Expansion Efforts
The collaboration with PickMe is part of a series of recent expansions by PhonePe. In April, PhonePe partnered with the Singapore Tourism Board to enable UPI payments for Indian visitors in Singapore. Domestically, PhonePe has ventured into secured lending and 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 maintains a dominant position in the UPI ecosystem in India, holding a 48.87% market share as of May.
