Zomato launches UPI payment service for seamless in-app payments
You will now be able to complete payments from the Zomato app itself. The Gurugram-based food delivery company has come up with its own unified payments interface (UPI) offering, called Zomato UPI. It eliminates the need for you to switch to other apps like Google Pay, PhonePe, or Paytm to make payments. The firm has collaborated with ICICI Bank for the service.
Why does this story matter?
Zomato UPI is something that users have long been requesting. The latest move will favor the company in big ways, considering that the food delivery market has been seeing a decline in recent times. With the launch of the new UPI payments service, the company seeks to reduce the dependence on third-party apps for finishing payments and offer a better in-app experience.
Zomato is trying to cut down on COD payments
Zomato UPI will help you complete payments in one go, without having to rely on secondary apps. With the launch of its own UPI feature, Zomato is trying to cut down on the cash-on-delivery (COD) form of payment. The company wants to minimize COD orders given that they are hard to manage and come with the added responsibility of handling the money.
Zomato has partnered with ICICI Bank for its UPI offering
Zomato received regulatory approvals for Zomato UPI earlier this year. The company then joined with ICICI Bank, which is among the largest private banks in India, for providing the necessary infrastructure for the service.
Large number of customers pay using UPI: Zomato
"Zomato has a large set of customers that frequently use UPI to make payments for their food orders," a company spokesperson told Moneycontrol. "We are providing a facility (as technology partner to ICICI) for customers to create a UPI ID on Zomato app so that they can make payments seamlessly (without the need to switch apps)," the person added.
How to set up Zomato UPI?
You will have to create a UPI ID after which you will be able to make payments from the Zomato app itself. "The user may apply for UPI facility by downloading iMobilePay, Pockets application, or through TPAP," according to the official website. "On iMobilePay, user will have the option to set a virtual payment address and initiate transaction via UPI."
The service is currently in its initial stage
Zomato UPI is currently in its initial stage. Based on the response of the public to the UPI offering, the company will take its next step. We expect a wider rollout to happen in the coming months.
