Zepto introduces in-app UPI option amid delivery platforms' push for internalised payments: Report

Quick commerce unicorn Zepto has launched an in-app UPI payments feature for its users, joining other major delivery platforms that are increasingly integrating payments within their apps to simplify checkout and cut reliance on third-party UPI providers, Moneycontrol reported.

The new feature allows customers to complete UPI transactions directly within the Zepto app, without being redirected to external payment apps such as Google Pay, PhonePe, or Paytm, making the checkout process smoother.

Although Zepto has not yet made a formal public announcement regarding the launch, some people have reportedly been able to access the feature in their respective apps.

To activate the option, the user must link their bank account in the Zepto app’s payment settings and activate the UPI. Then they can make payments by simply entering their UPI PIN, all inside the app.

Delivery apps move towards internalised payments

With this launch, Zepto joins other food delivery rivals that have added in-app UPI payments, showing that top consumer apps are now trying to make payments easier and keep them within their own platforms.

This shift can be widely witnessed as similar in-app payment offerings are available on Swiggy and Zomato. Both platforms rolled out their own UPI solutions over the past year.

In 2024, Swiggy announced the launch of 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 time and lower payment failures.

Zomato, on the other hand, rolled out its own UPI service in collaboration with ICICI Bank, enabling users to create a Zomato-linked UPI ID and make real-time payments directly within the app. Unlike Swiggy's plug-in-led integration, Zomato’s approach functions more like a full-fledged UPI handle issued through a banking partner, according to the Moneycontrol report.

Zepto's upcoming IPO

The launch comes as the company has reportedly filed preliminary papers with market regulator Sebi to raise ₹11,000 crore through its initial public offering (IPO) via the confidential route, PTI reported.

The company is targeting a stock market listing sometime this year, a move that could make it one of the youngest startups to go public.

If the listing goes through, Zepto will join its rivals, Zomato and Swiggy, both of which are already listed on the stock exchanges.