Indian Mobile Payments Market Hots Up

Two of India's major ecommerce companies made announcements this week that could have a huge impact on the industry in the country. Firstly, online retailer Flipkart is to release a payment app in a partnership with Yes Bank called PhonePe, whilst existing payment service Paytm is looking for investment from Mediatek. Flipkart's new partnership will enable users to connect their ecommerce accounts to their bank details, allowing for a seamless and secure shopping experience. Meanwhile, the Paytm investment is said to be particularly striking due to Mediatek having the leading 35% chipset market share in India, and as a result of the deal Paytm would be thereafter embedded in all Mediatek chipset phones. Following the deals, both companies will become each other's direct competitor in India's ecommerce market, after Paytm took 20 billion rupees in gross merchandise value in July, putting it level with Flipkart. All this in a country where online payment solutions are the fastest growing form of ecommerce payment, meaning that the impact on India's ecommerce market could be huge.