Zomato temporarily halts new user onboarding on Zomato UPI

Share via:

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.

Also Read The Latest News:
Elon Musk unveils xAI, an AI startup challenging tech giants
Swiggy expands into food and grocery retail with acquisition of LYNK logistics

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Popular

More Like this

Zomato temporarily halts new user onboarding on Zomato UPI

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.

Also Read The Latest News:
Elon Musk unveils xAI, an AI startup challenging tech giants
Swiggy expands into food and grocery retail with acquisition of LYNK logistics

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Website Upgradation is going on for any glitch kindly connect at office@startupnews.fyi

More like this

xAI is testing a standalone iOS app for its...

Elon Musk’s AI company, xAI, is testing out...

‘Taxing popcorn for 0.013% revenue? Ex-CEA K Subramanian questions...

Former Chief Economic Advisor (CEA) Krishnamurthy Subramanian on Monday...

FirstCry Parent Shares Decline 5%, Stock Down 10% YTD

SUMMARY The stock recouped some losses during the intraday...

Popular

Upcoming Events

Startup Information that matters. Get in your inbox Daily!