Swiggy, the prominent online food and grocery delivery platform, has introduced its own UPI (Unified Payments Interface) service, aiming to reduce reliance on external payment apps, minimize payment failures, and streamline the checkout experience.
In partnership with Yes Bank and Juspay, Swiggy has launched its in-app UPI payment service through the UPI-Plugin, diverging from its competitor Zomato, which applied for a Third Party Application Provider (TPAP) license for a similar service last year.
This development comes at a time when Zomato has scaled down its fintech ambitions, surrendering its Payment Aggregator (PA) license and withdrawing its application for a Non-Banking Financial Company (NBFC) license.
A source revealed that Swiggy has been testing the UPI service with its employees for the past month and plans to gradually roll out the service to all users in phases over the coming months.
The UPI Plugin, launched by the National Payments Corporation of India (NPCI) in 2022, allows merchants to offer UPI payment services within their apps without needing a TPAP license.
Swiggy aims to enhance user experience by eliminating the need for customers to switch to different apps like Google Pay or PhonePe for payments, reducing the risk of payment failures, especially in areas with poor network connectivity.
Other non-payment platforms, including Zomato, Flipkart, Goibibo, MakeMyTrip, and TataNeu, have opted for the TPAP licensing route to offer in-house UPI payment services.
An industry expert noted that the adoption of UPI plug-ins is expected to increase this year, as more merchants are ready to integrate these solutions.
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