One of the top foodtech businesses in India, Swiggy, is now testing a UPI plug-in in beta form to improve user experience and lessen dependency on other payment apps. This project, which was created in partnership with Juspay and Yes Bank, intends to improve customer satisfaction overall, decrease transaction failures, and streamline the payment process.
Credits: Inc 42
Enhancing User Experience
In order to give its users a smooth payment experience, Swiggy has included a UPI plug-in right into its platform. Customers can use the UPI plug-in to enter their UPI PINs within the Swiggy app, which connects them to partner PSPs (Payment Service Providers) directly to complete transactions. Users will find this inline payment experience more convenient as it removes the need to switch between apps throughout the payment process.
This is an especially noteworthy development because a sizable portion of Swiggy’s transactions are made over UPI. Swiggy can greatly improve user experience and maybe increase customer satisfaction and retention by making UPI payments more dependable and simple.
Reducing Payment Failures
Reducing payment failures, a recurring issue in the past, is one of the main driving forces for this project. For example, in November Swiggy had a significant payment gateway disruption that prevented many users from placing orders. Through its collaboration with Yes Bank and Juspay to incorporate the UPI plug-in, Swiggy hopes to lessen these problems going forward and guarantee a more dependable payment method.
In order to solve these kinds of problems, the National Payments Corporation of India (NPCI) introduced the UPI plug-in in 2022. This plug-in offers merchant apps a more comprehensive and integrated payment solution. Swiggy’s use of this technology is evidence of their dedication to utilizing cutting-edge technologies to improve the services they provide.
Phased Public Launch
Currently, the UPI plug-in is being tested with select members of the Swiggy team, with a phased public launch planned for the future. While no specific timeline has been announced, the gradual rollout strategy suggests Swiggy’s cautious approach to ensuring the system’s stability and performance before a full-scale launch. This methodical approach will likely help in identifying and addressing any potential issues during the initial stages, thereby ensuring a smoother experience for the broader user base when it is eventually rolled out.
Competitive Edge
Swiggy’s choice to incorporate the UPI plug-in coincides with Zomato, its primary rival, also experimenting with payment methods. Zomato, however, recently gave up the license it had obtained from the Reserve Bank of India (RBI) in January to operate as an online payment aggregator. With Zomato reducing its objectives for payments, this move could provide Swiggy an advantage as it keeps innovating and improving its payment infrastructure.
Broader Market Implications
The launch of the UPI plug-in is consistent with Swiggy’s overall marketing plan. In a recent analysis, Swiggy and Bain & Company projected that by 2030, the meal delivery business in India would have grown to INR 2.12 Lakh Cr, a more than threefold increase. By providing a better user experience, optimizing payment processes with UPI integration is a calculated move to take a big chunk of this expanding market.
Impact on IPO Prospects
As it gets ready for its initial public offering (IPO), Swiggy is working to develop and enhance its service offerings. The company submitted its initial public offering (IPO) documents to the Securities and Exchange Board of India (SEBI) in April through a private pre-filing method. A new share offering valued at INR 3,750.1 Cr (about $449 million) and an offer-for-sale component valued at INR 6,664 Cr (roughly $799 million) are anticipated to be included in the IPO.
Swiggy stands to gain market share and investor trust by showcasing its dedication to improving customer experience and decreasing transaction failures through programs like the UPI plug-in. This might lead to a more prosperous initial public offering (IPO), giving the business the money it needs to grow even further.
Conclusion
In an attempt to improve customer experience, lower payment failure rates, and obtain a competitive advantage in the quickly expanding food delivery business, Swiggy is developing a UPI plug-in in beta form. Such advances are expected to strengthen the company’s market position and draw investor interest as it prepares for its initial public offering (IPO), laying the groundwork for future growth and success.
