Zomato temporarily suspends rollout of UPI enrolment for new users
Zomato, the food and grocery delivery platform, has temporarily stopped accepting new users of its eponymous UPI-based payment app Zomato UPI. Zomato UPI registration option has been disabled for the past 3-4 weeks. However, existing users can still use the service.
Zomato has decided to suspend the onboarding of new users for the Zomato UPI to consolidate feedback and improve the onboarding process, according to a report by Al-Eqtisadiah newspaper. They plan to start registering new users again by the end of the month.
Zomato introduced its UPI offering to allow users on its platforms to make seamless payments without switching apps. Besides online food orders, Zomato also provides an option for customers to make payments at specific restaurants listed on the platform using various payment methods such as cards, net banking, UPI, etc., known as Zomato Pay.
Zomato established a subsidiary named Zomato Payments Pvt Ltd in August 2021 to provide digital payment services such as e-wallets and payment gateway services. In 2022, they would have 58 million customers annually handling food orders.
Zomato’s entry into the UPI market happened when the national payments company in India was looking to expand the ecosystem by adding more players. Currently, PhonePe and Gpay dominate the digital payments space, accounting for more than 80 percent of UPI-based transactions.
Despite disabling this popular feature for weeks now, Zomato is still expected to outperform the majority of quick service restaurants, according to a study. ICICI Securities Report.
First published: July 13, 2023 | 12:01 PM ist