- By Priyanka Payal
- Wed, 17 May 2023 12:42 PM (IST)
- Source:JND
ONLINE food delivery app Zomato has now launched its own UPI (Unified Payments Interface) service called Zomato UPI. The UPI service rolled out by the Food and grocery delivery company is a real-time payment system which will allow users to make payments to both merchants as well as individuals directly. The company has launched this service in partnership with ICICI Bank.
Now with the rollout of Zomato UPI, users will not be redirected to other digital payment apps like Google Pay, PhonePe or others to make payments. It is believed that this service will make the process less cumbersome for users.
It is also likely that customers will now move away from the cash-on-delivery (COD) method as they will find this new facility more convenient. According to people familiar with the matter the Gurugram-based company received regulatory approvals earlier this year and then partnered with ICICI Bank for the tech infrastructure needed for Zomato UPI.
Zomato has rolled out its UPI app to reduce dependence on third-party payment apps and reduce the number of COD orders. Cash on delivery order is usually not preferred by companies given the difficulty to manage COD orders and the added cost of handling the money and the refusal by customers to accept orders when they had opted for cash payment.
Though initially, the company has partnered with ICICI Bank, there are speculations that Zomato will collaborate with more banks in the coming time.
Customers can easily activate Zomato UPI by following the below-listed steps:
- Open the Zomato app on your device
- Click on the profile section of your Zomato account.
- Scroll down until you find the Zomato UPI option.
- Click on “Activate Zomato UPI."
- Set your desired Zomato UPI ID.
- Select your mobile number when prompted.
- Link your bank account to enable effortless payments through the Zomato application.
Furthermore, there are also reports that Ecommerce giant Flipkart has also started working on its own UPI offering. Citing sources, a report by ET said that Bengaluru-based company Flipkart is also working on introducing its own UPI offering.
This aligns National Payments Corporation of India (NPCI) which has been taking initiatives to reduce dependency on two UPI payment apps - PhonePe and Google Pay, as the duo have a combined market share of more than 80%.
