Aadit Palicha-led Zepto launches in-app UPI to cut reliance on third-party payment apps

Quick-commerce unicorn Zepto has quietly launched an in-app UPI payments option that allows customers to complete transactions without being redirected to external payment apps, Moneycontrol reported.

All about Zepto's in-app UPI payment feature

The feature enables users to enter and authorise UPI credentials entirely inside the Zepto app, keeping the checkout flow rooted to the platform. Aadit Palicha’s company did not respond to queries about which bank or technology partner is underwriting its current feature.

The in-app flow cuts any reliance on the usual third-party UPI apps such as Google Pay or PhonePe.

After a one-time setup, users can select UPI at checkout and approve payments within Zepto itself, eliminating the need for app switches, manual copy-pastes of UPI IDs or QR scanning.

The internal process also gives the company direct visibility into transaction success and failure rates, metrics that are crucial for high-frequency commerce.

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Zepto joins rival Swiggy, Zomato

In 2024, Swiggy rolled out Swiggy UPI, integrating National Payments Corporation of India’s (NPCI) UPI Plug-in solution. The company said in a blog post that the feature aims to deliver faster checkout times and lower payment failures.

Another quick commerce player, Zomato, launched its own UPI service in collaboration with ICICI Bank, for users to create a Zomato-linked UPI ID and make real-time payments directly within the app. 

With the new feature, Zepto joins food delivery rivals that have added in-app UPI payments, indicating that top consumer apps are now trying to make payments easier and also maintain them within their own platforms.

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