Swiggy enters UPI market, redefines convenience in digital payments
As UPI transactions increase, innovations like Swiggy's UPI plugin are poised to streamline digital payments further
New Delhi: In the era of digital India, UPI payments are rapidly gaining momentum. According to NPCI data, transactions through UPI surged by 49 % in June, reaching nearly 14 billion transactions. This growth has seen new players entering the UPI market, potentially challenging giants like PhonePe and Google Pay.
Following the footsteps of Zomato, food delivery company Swiggy has also launched its own UPI service. Swiggy aims to reduce dependency on third-party apps for payments, thereby enhancing convenience for customers. Customers no longer need to switch between apps to complete their transactions after placing orders. This could also reduce instances of payment failures for Swiggy.
Payment via third-party UPI apps no more
Swiggy’s UPI service differs from Zomato’s as it operates as a UPI plugin. This innovation, initiated by NPCI in 2022, allows businesses to integrate UPI payments directly into their apps without the need for a third-party license. Such integration not only simplifies transactions for both businesses and customers but also minimizes the chances of payment failures.
Moneycontrol revealed that Swiggy has rigorously tested its UPI service with employees before gradually rolling it out to customers over the coming months. This cautious approach aims to ensure seamless functionality and reliability of the service.
As per NPCI’s March 2024 figures, Google Pay and PhonePe dominate the UPI payment app market, holding approximately 86% of the market share by transaction volume. Google Pay leads with a 37.6% share, closely followed by PhonePe with 48.3%. Paytm, which previously held a significant share, has seen a decline following regulatory actions by the Reserve Bank of India.
Apart from Google Pay, PhonePe and Paytm, several other apps like Tata Neu and CRED are also providing UPI payment services. This is contributing to the competitive landscape of the market.
As UPI transactions continue to rise, innovations like Swiggy’s UPI plugin are expected to further streamline digital payments. It offers greater convenience and reliability to users across India’s evolving digital economy.