Online food and grocery delivery company Swiggy has also launched its own UPI (Unified Payments Interface) service. The company has taken this initiative to reduce dependence on external apps, reduce payment failures and simplify the checkout experience. The company has launched this service through UPI-plugin in partnership with Yes Bank and Jaspay. Earlier, Swiggy’s rival Zomato had applied for a third party application provider license to offer the same service last year.
It will start phase wise for all users
According to the news, the launch of this service by Swiggy has come at a time when Zomato has reduced its fintech play by surrendering the payment aggregator license and withdrawing its application for non-banking financial company (NBFC). According to the news of Money Control, Swiggy has been experimenting with the product for its employees since last month and will gradually launch the product phase wise for all its users in the next few months. Let us tell you, a new option, UPI Plugin, was launched by the National Payments Corporation of India (NPCI) in the year 2022, which eliminates the need for merchants to obtain a third party application provider license to start UPI payment service within their app.
The risk of payment failure increases
When customers have to go to another app to make payments, the risk of payment failure increases, especially when network connectivity is not good. Apart from popular payment apps like Google Pay, PhonePe and Paytm, non-payment platforms like Zomato, Flipkart, GoIbibo, MakeMyTrip, Tata Niro have taken the third party application provider licensing route to offer in-house UPI payment services.
The aim is to eliminate the need for redirection
The idea behind providing customers with an in-house UPI payment option is to eliminate the need for redirects to another app when ordering food or groceries, as introduced by Zomato in May last year. Customers get the option to pay their food bills directly using their Swiggy UPI account, which also reduces payment downtime.
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