In a significant move to streamline the user experience, quick commerce unicorn Zepto has introduced a native UPI payments feature within its application. This development allows customers to complete transactions without being redirected to external payment apps like Google Pay, PhonePe, or Paytm, according to a Moneycontrol report.
How Zepto's New In-App UPI Feature Works
Although the company has not made an official public announcement, users have reportedly started gaining access to the new functionality. To activate the feature, a customer must link their bank account within the Zepto app's payment settings and set up UPI. Once configured, payments can be finalized by simply entering the UPI PIN, entirely within the Zepto ecosystem.
This integration is designed to make the checkout process smoother and potentially reduce payment failures by cutting out extra steps. The launch signifies a broader industry trend where major consumer apps are internalizing payment solutions to keep users engaged on their platforms.
The Growing Trend of Internalized Payments in Delivery Apps
With this launch, Zepto aligns itself with its primary rivals in the food and grocery delivery space. Both Swiggy and Zomato rolled out their own in-app UPI solutions over the past year, indicating a strategic shift towards owning the entire customer journey.
In 2024, Swiggy announced the launch of Swiggy UPI, utilizing the National Payments Corporation of India's (NPCI) UPI Plug-in solution. The company stated this feature aims to ensure faster checkout times and lower instances of payment failure.
Zomato, on the other hand, introduced its UPI service in partnership with ICICI Bank. This approach allows users to create a Zomato-linked UPI ID and functions more like a full-fledged UPI handle issued through a banking partner, as per the Moneycontrol report.
Strategic Moves Ahead of a Major IPO
The timing of Zepto's payment feature launch is particularly noteworthy. The company has confidentially filed preliminary papers with market regulator Sebi to raise approximately ₹11,000 crore through an Initial Public Offering (IPO), as reported by PTI.
Zepto is targeting a stock market listing later this year. If successful, it would become one of the youngest Indian startups to go public. A seamless, integrated payment system is often viewed favorably by investors as it enhances customer retention and opens up potential revenue streams.
Upon listing, Zepto will join its already-public rivals, Zomato and Swiggy, on the stock exchanges, setting the stage for intensified competition not just in deliveries, but also in the integrated fintech services they offer to users.
