Wallet provider Freecharge, one of the first to support the new UPI platform, has now tied up with Indian Oil to let customers make payments for gas deliveries via a PIN number.
Once the pin number is provided to the gas delivery boy, the amount will be deducted from your Freecharge account.
The pilot project for this is already live with multiple distributors in Bangalore, Chandigarh, Raipur and Kolkata.
“By the end of March 2017, the project is expected to cover the entire IOCL network comprising nearly 8000 dealerships across India,” Freecharge said.
Once the roll out is complete, every IOCL consumer will have the option to pay for the LPG deliveries using their Freecharge wallet.
At the point of delivery, customers will be able to complete payment for their LPG cylinders within 10 seconds and at the tap of a button, making the entire transaction process swift and seamless.
The payment will get completed even without Internet connectivity, since Freecharge’s On-The-Go-Pin works even in offline mode.
“This technological innovation in payments landscape will prove to be a great advantage for consumers and will also come as a relief to thousands of LPG delivery agents who have to deal with hassles of handling large amounts of cash daily,” the company claimed.
Unlike Western countries, the number of people who have smartphones in India is comparable to or higher than the number of people who have bank accounts. As a result, app-based payment and wallets could eventually become more prevalent and popular than bank-account- and card-based-payments.
However, wallet providers are facing a threat from the new UPI app interface being rolled out by banks. The interface is, in many ways, superior to the wallets in terms of convenience of payment.
Freecharge has been a pioneer in trying to give its customers both options, of using its wallets or using cards, accounts or UPI to make payments.
“The partnership will create another milestone in our journey to make consumers move from cash to e-cash,” said Govind Rajan, CEO, Freecharge.
“Enabling payment through the Freecharge wallet will make the entire transaction process swifter, safer and more convenient for customers and for the LPG delivery agents. With every innovation and association, we are supporting Indian Government’s ambition of a digital India and RBI’s vision of a less cash economy.”