Foodtech startup Zomato has reportedly paused the onboarding of new users on its UPI payments vertical, Zomato UPI. According to sources, the sign-up option for Zomato UPI has been disabled for the past few weeks. Users who did not sign up for it before the temporary suspension do not see the UPI option in the app.
Zomato Partnership with ICICI Bank and Feedback Incorporation
The Foodtech platform has partnered with ICICI Bank to provide UPI payment services. The company confirmed the temporary halt, mentioning that the UPI feature is still available to existing users. The spokesperson stated that the pause is in place to incorporate feedback received on the onboarding flow. The spokesperson added that they plan to resume enrolling new users by the end of the month.
Zomato-UPI’s Launch and Payment Options
Zomato-UPI was launched in May as a service for peer-to-peer (P2P) and merchant transactions. The aim was to enable users on Zomato’s platforms to make payments without needing to switch apps. Alongside paying for online food and grocery orders on Zomato and Blinkit, the foodtech giant also offers customers the option to pay at select restaurants listed on Zomato using various payment options such as cards, net banking, and UPI through Zomato-Pay.
Zomato’s Payments Endeavors
The platform established Zomato Payments in August 2021 to provide digital payment solutions, including wallets and payment gateway services. Additionally, the company sells gift cards on its app, allowing users to purchase and send them. In 2022, the platform witnessed a substantial increase in its annual transacting customers for food orders. It reached 58 million compared to 49.5 million in 2021. It aims to leverage the significant traffic flow through its systems to drive online payments.
Zomato’s Market Presence and UPI Landscape
Zomato’s move to launch its own UPI offering coincides with the National Payments Corporation of India (NPCI) seeking to expand the ecosystem by adding more players. Currently, the UPI landscape is dominated by three major players—PhonePe, Google Pay, and Paytm—which consistently account for over 95% of UPI traffic. Zomato’s decision to pause new user onboarding on Zomato UPI comes as other tech startups. Including ecommerce giant Flipkart, are considering launching their own UPI services. Company’s stock continues to perform well, surging 6% in intraday trading on Thursday, reaching a 52-week high of INR 84.50 per share.
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