Zomato, the food and grocery delivery network, has temporarily suspended new user registration for its UPI-based payment application, Zomato UPI. For the past 3-4 weeks, the Zomato UPI sign-up option has been unavailable. Existing customers, however, can continue to utilise the service.
Zomato has chosen to postpone onboarding new users for Zomato UPI in order to incorporate input and enhance the onboarding process. They intend to resume new user enrollment before the end of the month.
Zomato introduced its own UPI offering to allow users on its platforms to make seamless payments without switching apps. Besides online food orders, Zomato also provides the option for customers to make payments at certain restaurants listed on the platform using different payment methods like cards, net banking, UPI, and more, known as Zomato Pay.
Zomato established a subsidiary called Zomato Payments Pvt Ltd in August 2021 to offer digital payment services such as e-wallets and payment gateway services. In 2022, they had 58 million annual transacting customers for food ordering.
When Zomato entered the UPI market, the NPCI was eager to extend the ecosystem by bringing in new firms. PhonePe and Gpay currently dominate the digital payments industry, accounting for more than 80% of UPI-based transactions.
This popular feature disabled for several weeks, according to an ICICI Securities analysis. Zomato is still predicted to surpass the bulk of quick-service restaurants.
In addition, Zomato has also introduced new features to its apps to better compete against Swiggy for market shares. Much like Phonepe’s Pincode feature, which allows consumers to build carts across categories. Zomato will also allow consumers to build carts for up to four restaurants.
Keytakes in short: Zomato temporarily suspends rollout of UPI enrolment for new users
- According to a Zomato spokesperson, the UPI feature has been paused to incorporate feedback received on the onboarding flow.
- Launched in May for P2P and merchant transactions, Zomato UPI was said to have been launched to allow users on its platforms to make payments.
- The listed foodtech had set up a subsidiary, Zomato Payments, to offer digital payment solutions such as wallets and payment gateway services.
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