Food delivery platform Swiggy has launched its own UPI (Unified Payments Interface) platform. The aim of the app is to reduce dependency on other third-party payment providers. This is as per a MoneyControl report.
The new in-app payment service by Swiggy is being introduced through the UPI-Plugin in collaboration with Yes Bank and Juspay.
Food delivery platform Swiggy has launched its own UPI (Unified Payments Interface) platform. The aim of the app is to reduce dependency on other third-party payment providers. This is as per a MoneyControl report.
Its competitor, Zomato, sought third-party application provider (TPAP) permission to offer the same service last year. The service was launched in collaboration with ICICI Bank for real-time payments.
The new in-app payment service by Swiggy is being introduced through the UPI-Plugin in collaboration with Yes Bank and Juspay.
Meanwhile, Zomato is trying to tone down its fintech business. Just a few months after getting the central bank’s license to work as a payment aggregator, it surrendered its license. In a stock exchange filing, the food tech firm said, ““The payments landscape in India has evolved meaningfully over the past couple of years since the time we applied for these licenses.”
The company further added, “At Zomato, we do not see ourselves having a significant competitive advantage against the incumbents in the payments space, and hence we don’t foresee a business in the payments space as commercially viable for us at this stage.”
Swiggy has reportedly been experimenting with the product with its employees. Gradually, the food tech platform will roll out the products to its users soon.
The National Payments Corporation of India (NPCI) came up with the UPI Plugin in 2022. In a statement, the NPCI said, “To improve acceptance and UPI migration for merchants, a UPI plugin service is being introduced wherein the sponsor bank extends their PSP bank SDK (Parent App) to integrate with the Merchant's App (Parner App).”
The UPI Plugin’s goal is to make it unnecessary for retailers to obtain a TPAP license in order to begin accepting UPI payments through their app. Popular payment apps that use the TPAP license are Google Pay, PhonePe, and Paytm. Other non-payment platforms that use the TPAP license are Zomato, Flipkart, Goibibo, MakeMyTrip, and others.