Flipkart Follows Zomato’s Own UPI Offering Service

Flipkart Follows Zomato’s UPI Service: Zomoto has officially launched the Unified Payments Interface (UPI) policy. Users of this service will be able to send payments to merchants as well as other users thanks to a partnership between the company and ICICI Bank.

Zomato issued a statement in which it acknowledged the development and stated, “Zomato has a sizable client base that commonly uses UPI to pay for their meal purchases. Customers can create a UPI ID on the Zomato app using our facility (as a technology partner to ICICI), which enables them to make payments without switching apps.”

The Economic Times broke the news first. The e-commerce behemoth Flipkart, located in Bengaluru, is also trying to launch its own UPI solution, according to a report by ET. According to sources, this action is intended to better serve customers through their own UPI solutions. 

This is consistent with efforts made by the National Payments Corporation of India (NPCI) to lessen reliance on PhonePe and Google Pay. These two UPI payment apps together account for more than 80% of the market. A mandate to not control more than 30% of the market share in terms of payment volume on the UPI network was implemented by the payments regulating body in an effort to end this hegemony. 

The mandate’s compliance deadline has been extended till December 31, 2024.

Consumer internet companies have a longer-term motivation to develop their own UPI solution rather than relying on other payment aggregators. Having your own payment product is a method to protect against any future merchant commissions that may be required for companies that process millions of transactions annually, according to sources who spoke with ET.

Amazon, WhatsApp, Tata Neu, MakeMyTrip, and other firms are among those who have already launched their own UPI products.