Zepto Rolls Out In-App UPI Payments to Streamline Checkout and Boost Conversions

Quick-commerce unicorn Zepto has rolled out a native in-app UPI payment feature, allowing customers to complete transactions directly within the Zepto app without being redirected to third-party UPI applications such as Google Pay, PhonePe, or Paytm.

The move places Zepto alongside other leading food delivery and quick-commerce platforms that have increasingly internalised payments to improve checkout speed, reduce friction, and gain greater control over transaction flows.

By embedding UPI payments into its app experience, Zepto aims to enhance customer convenience while improving payment success rates — a critical metric in the high-frequency, low-ticket quick-commerce segment.

What the In-App UPI Feature Offers Users

With the new in-app UPI option, Zepto users can:

• Link their bank account within the Zepto app
• Authenticate payments using their UPI PIN inside the app
• Complete checkout without switching to external payment platforms
• This streamlined flow reduces interruptions during checkout, helping ensure faster order completion and a smoother user experience.

Why Delivery Platforms Are Bringing Payments In-House

Zepto’s rollout reflects a broader industry trend where delivery and commerce platforms are increasingly choosing to own the payment experience rather than relying entirely on third-party apps.

Key advantages include:

• Lower cart abandonment due to fewer checkout steps
• Better visibility into payment success and failure rates
• Improved reconciliation and faster issue resolution
• Enhanced ability to design payment-linked offers and loyalty programs

For platforms operating at scale, even marginal improvements in checkout conversion can translate into meaningful revenue impact.

Strategic Importance for Quick Commerce

1. Faster Checkout Improves Conversions

In quick commerce, speed is central to the value proposition. Reducing delays at checkout aligns directly with customer expectations of instant service.

2. Greater Control Over User Experience

Owning the payment layer allows platforms to optimise user journeys end-to-end, from product discovery to transaction completion.

3. Foundation for Future Monetisation

Native payments open up possibilities for targeted discounts, subscription integrations, wallet-style features, and deeper customer engagement over time.

What Remains Undisclosed

While the in-app UPI feature is live for select users, Zepto has not publicly disclosed:

• The banking or technology partner supporting the integration
• Whether the system is built on NPCI’s UPI plug-in framework or a custom model
• Details around settlement timelines or merchant payout structures
• The rollout appears to be gradual, with broader availability expected over time.

Source: https://www.thehindubusinessline.com/companies/zepto-rolls-out-in-app-upi-as-delivery-platforms-bring-payments-in-house/article70478525.ece