Digital payments platform PhonePe said on Monday it has partnered with e-commerce marketplace Flipkart to launch contactless scan and pay for pay-on-delivery orders. PhonePe's QR code solution will enable customers who earlier opted for cash on delivery to pay digitally through any Unified Payments Interface (UPI) app at the time of delivery.

This will help reduce personal contact while ensuring safety and drive contactless payments for customers who are traditionally more comfortable with cash on delivery. Ankit Gaur, Director of Business at PhonePe, said digital payments adoption has become widespread over the past few years due to UPI. However, there still continues to be a preference for cash on delivery among some customers at the time of delivery.

"Digitising these cash-based payments will give a major boost to not just e-commerce but also contribute to the larger goal of Digital India," he said. Ranjith Boyanapalli, Head of Fintech and Payments Group at Flipkart, said as the lines between e-commerce marketplace and digital payments continue to converge, it becomes imperative to solve for customers' evolving needs and attitudes. While the pandemic has urged several consumers to make a shift to online shopping, some trust deficit during checkout remains in pockets.

"With 'pay-on-delivery' technology, we want to ensure that customers have peace of mind with their payments and at the same time can shop within the safety of their homes," he said.