The increasing trend of in-app UPI (Unified Payments Interface) payments has been followed by Swiggy. Following the introduction of a comparable service by rival Zomato in 2023, the domestic online food and grocery delivery platform in India has made this step. The goal of Swiggy’s new in-app UPI integration is to make the checkout process easier for its users.
A source close to the development told MoneyControl, “Swiggy has currently launched this in a closed user group (CUG) to its employees and will soon start opening this in phases to customers.”
The article states that Swiggy has been testing the product for its staff members for the past month. Over the following six months, the business plans to progressively roll out the product to all of its consumers in phases.
How Swiggy’s approach is different from Zomato’s?
In contrast to Zomato, which chose to secure a Third-Party Application Provider (TPAP) license to accept UPI payments, Swiggy has adopted a different strategy.
In the meanwhile, Swiggy has joined together with Juspay and Yes Bank to take use of their pre-existing UPI infrastructure. The food delivery platform may be implemented more quickly and easily with this partnering strategy.
What Is UPI Plugin And What It Means Users?
In 2022, the National Payments Corporation of India (NPCI) unveiled UPI Plugin, a brand-new feature. With this option, companies may enable UPI payments within their applications without requiring a TPAP license, which was previously necessary.
This makes things easier for customers and businesses alike. Before, in order to finish payments, customers had to move to a different app. It is anticipated that integrating UPI inside the app will reduce the transaction failures that occasionally occur when users make payments through third-party channels.
While Zomato and other platforms utilize TPAP licenses, they may connect directly to banks for UPI services thanks to the UPI Plugin. In addition to Swiggy, some other applications that utilize the UPI Plugin are Apollo 24/7, Ola, and Zerodha’s Coin.
Swiggy and ICICI Bank collaborated to introduce Swiggy Money, a digital wallet, in 2020. Additionally, the business unveiled its co-branded credit card with HDFC Bank last year.
