Zomato, a food and grocery delivery service, has announced a partnership with ICICI Bank to launch its own unified payments interface (UPI) offering dubbed Zomato UPI. With this new feature, Zomato aims to enhance the payment experience for its users by allowing them to complete orders and make payments seamlessly within the Zomato app, without the need to switch to a separate payment app.
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Streamlining Payments with Zomato UPI:
Zomato UPI eliminates the hassle of redirecting users to external payment apps like Google Pay or PhonePe. Users may now sign up for a new UPI ID directly from the Zomato app. This feature ensures that customers can complete their orders and make payments on the same page, enhancing convenience and efficiency.
Reducing Cash on Delivery (COD) Orders:
The introduction of Zomato UPI aims to minimise the company's dependency on cash on delivery (COD) orders. COD orders are difficult to manage and incur additional fees for cash handling. Zomato aims to eliminate these obstacles and provide a more seamless payment experience for its consumers. With Zomato UPI, the company hopes that more customers will opt for digital UPI payments, moving away from the traditional COD option.
Enhanced Control and Customer Satisfaction:
Zomato UPI allows the company to have more control over the success rate of payments, reducing dependence on third-party payment apps and their functionality. By relying on its own UPI offering, Zomato can ensure a seamless payment experience for its customers and potentially increase customer satisfaction. This move comes as the meal delivery sector slows, making customer satisfaction an important component of maintaining a competitive edge.
Partnership with ICICI Bank:
Zomato has partnered with ICICI Bank, one of the largest private banks in India, to develop the necessary technology infrastructure for Zomato UPI. The agreement uses ICICI Bank's expertise in digital payments and banking services to provide Zomato users with a secure and convenient payment solution. This collaboration exemplifies Zomato's commitment to providing creative and user-friendly solutions to improve the entire customer experience.
Future Plans and Expansion:
Zomato UPI is currently in its pilot phase, allowing the company to assess adoption rates and customer engagement. Depending on the success and reception of the feature, Zomato may consider partnering with additional banks or proceed with a gradual rollout. The introduction of Zomato UPI marks a significant step towards reducing dependence on dominant players like PhonePe, Google Pay, and Paytm, who currently control a significant share of the UPI market.
