NEW DELHI: Post covid-19 mobile payment apps have emerged as an important platform for selling and purchasing insurance plans, especially in tier 2-3 cities where many are buying insurance for the first time. Flipkart-owned Phone Pe, which has over 70% of users in tier 2 and 3 cities, has sold over 5 lakh insurance policies between April and August.
According to PhonePe, many of them were first time buyers and came from tier 2-3 cities such as Visakhapatnam, Jaipur, Ahmedabad, Nashik, Vijayawada and Aurangabad.
Until last year, recharges, booking movie tickets and contactless payments at stores and restaurants was the focus area for most payment apps. After covid-19, PhonePe like most of its rival apps started diversifying into other areas and introduced insurance and grocery shopping on its apps.
PhonePe added insurance products on its platform 9 months ago and currently has 5-6 plans such as covid-19 insurance, hospital daily