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  • EPFO will Implement Fast PF Withdrawals Via ATMs and UPI

    With immediate access via UPI and ATMs, the Employees’ Provident Fund Organisation (EPFO) plans to implement a significant modification to PF withdrawals. By the end of May or the beginning of June 2025, EPFO members will no longer have to endure drawn-out withdrawal processes. The National Payments Corporation of India (NPCI), which is in charge of the nation’s digital payment infrastructure, has approved the plan, which is supported by the Ministry of Labour and Employment.

    Government Setting a Limit of INR 1 Lakh

    With a withdrawal cap of up to INR 1 lakh, employees would have immediate access to their PF money, according to Sumita Dawra, Secretary, Ministry of Labour and Employment. Members would be able to monitor their PF balance directly on UPI and make instantaneous withdrawals using an automated mechanism by the end of May or early June, she told a news agency. For transfers, they can choose the bank account of their choice. Members will be able to easily fulfil urgent financial necessities thanks to the INR 1 lakh withdrawal limit. Withdrawals from PF are now a laborious procedure. Members of EPFO must file claims online and wait for approvals, which can occasionally take weeks. Employees will also be able to monitor their balances and conduct instant transactions thanks to the UPI connection.

    In addition to the current option for medical crises, the EPFO is expanding the scope of fund withdrawals by permitting members to take money out for housing, education, and marriage. The goal of this expansion is to give the nation’s workers more financial flexibility. Dawra emphasised that in order to streamline withdrawals, EPFO has enhanced its digital infrastructure by integrating more than 120 databases. With 95% of claims now automated, the claim processing time has been reduced to only three days, and more advancements are planned.

    Drafting these Reforms was a Big Challengee: Dawra

    According to Dawra, implementing these improvements proved challenging. The enormous size of the EPFO is demonstrated by the number of its members. With 147 regional offices spread across the country, the organisation has over 7.5 crore active members and is still expanding, acquiring 10–12 lakh new members each month. Prime Minister Narendra Modi’s goal of “ease of living” for both businesses and employees is in line with these reforms, Secretary Dawra said. The project intends to modernise IT infrastructure, streamline social security procedures, and give Indian workers more financial ease. A major turning point in India’s digital financial transformation will be reached with the upcoming introduction of UPI and ATM-based PF withdrawals, which will provide millions of working professionals with previously unheard-of speed and ease.

  • UPI Collect Call Transactions will be Phased Out by NPCI

    To combat growing online fraud, the National Payments Corporation of India (NPCI) plans to gradually phase out collect phone transactions for merchant payments on the Unified Payments Interface (UPI). By lowering the possibility of illegal fund withdrawals, this ruling attempts to minimise fraudulent transactions in which retailers ask for payments from clients. Through their UPI app, retailers can begin payment requests that customers confirm through a collect call transaction, commonly referred to as a pull payment. However, scammers are increasingly using this technique to trick customers into approving illegal payments by fabricating websites or businesses. In order to improve security, NPCI is concentrating on push transactions, which lower the chance of fraud by allowing users to initiate payments on their own by manually entering merchant information or scanning QR codes.

    Significant Shifts in UPI Transactions as Collect Call Payments Fall

    In February 2025 alone, UPI processed 16 billion transactions, 10 billion of which were merchant payments, making it the most popular digital payment mechanism in India. UPI transactions have increased by 46% in the last year, from 117.7 billion in 2023 to 172.2 billion in 2024. Notwithstanding this expansion, collect call transactions—in which retailers ask clients for money—are declining in frequency. Direct UPI connections through payment service providers are becoming more popular among big organisations and e-commerce platforms. According to industry experts, collect phone transactions currently account for fewer than 3% of all merchant payments. Peer-to-peer (P2P) transactions are less common because NPCI has already capped pull transactions at INR 2,000 per request.

    Additionally, less than 3% of all UPI payments are made using these transactions, indicating a move towards safer payment systems where users start the transfer on their own. Banks are currently advocating for the reinstatement of the Merchant Discount Rate (MDR) on RuPay and UPI debit card transactions due to modifications in UPI security. To encourage the use of UPI, MDR, a nominal fee assessed to companies for handling digital payments, was previously eliminated. MDR may have an impact on small firms that presently benefit from free digital payments if it is reinstated, perhaps raising the cost of UPI transactions for them. In order to ensure the security of UPI payments, NPCI is developing new methods to check businesses as collect call transactions become outdated. The specifics of these new regulations are still being worked out, but they may force banks and payment service providers to perform more stringent background checks on companies.

    India Sees a Sharp Increase in Digital Payment Fraud

    Digital payment fraud has grown significantly, according to data from the Reserve Bank of India (RBI), which shows a dramatic rise in scam instances. According to a Business Standard report, 13,133 fraud instances involving cards and digital banking were registered in the first half of FY25, resulting in losses of INR 514 crore. Over 29,000 occurrences of digital banking scams occurred in FY24, and scammers stole an incredible INR 1,457 crore. By deceiving clients into approving payments for services or goods that do not exist, fraudsters frequently take advantage of pull transactions. Many smaller retailers continue to evade know-your-customer (KYC) verification, which makes fraud easier to carry out, in contrast to major online retailers like Flipkart and Amazon, which interface with regulated payment aggregators like PhonePe and Paytm.

  • RuPay network is driving growth in digital payments says NPCI

    • RuPay network accounts for nearly 16% of India’s credit card spendings, driven by UPI linked credit cards.
    • Over 30 banks issue RuPay credit cards leading to a significant increasae in transactions.
    • The NPCI initiates to take indian payments global by setting up new R&D center to drive innovation.
    • RuPay credit cards holds more than 750 million transactions in the ongoing fiscal year, October 2024.
    • In June 2022, the Reserve Bank Of India has approved the integration of UPI with RuPay credit cards.

    Mumbai: In a statement at the Mumbai Tech week, Managing Director of NPCI, Dilip Asbe noted that RuPay card network holds nearly 16% of India’s credit card spending and almost half of these transactions are based on UPI. Furthermore he added, over 30 banks issue RuPay credit card that leads to a significant drift in the transaction rate. RuPay network is said to as India’s indigenous payment network that runs on National Payments Corporation of India (NPCI).

    “Almost 16% of the total credit card spendings are taking place on RuPay credit card network and 50% of them are UPI based. 30+ banks in the country are issuing RuPay credit cards, leading a rise in the transaction rate,” says NPCI chief Dilip Asbe.

    A latest report published by the Ministry of Finance highlights that more than 750 million transactions that amounts to nearly INR 63,825.8 crore are concerned with RuPay credit cards as recorded in the ongoing fiscal year, October 2024 (FY2025). Where as in the last fiscal year, a total of 362.8 million transactions were recorded that amounted to INR 33,439.2 Crore.

    The NPCI is expanding its influence with new R&D centers, globalizing UPI transactions.

    In the Meantime, NPCI is taking initiatives to present Indian payments on a global level by setting up new R&D center spanning over five lakh square feet  in Mumbai at the Bandra-Kurla Complex, facilitating nearly 5,000 people capacity. The Mumbai Metropolitan Region Development Authority (MMRDA) is involved in allocating land to NPCI for the establishment of these centers.

    “We are aiming to establish about 5,000-people Capacity R&D and Experience Centre. In the last 4 to 5 years, almost 70 countries had their visit at the NPCI office,” says Dilip Asbe.

    NPCI is looking forward to introduce UPI with geographies related to Indian tourists, such as Thailand, Qatar and Southeast Asia. Currently, UPI payments are accepted in several countries including Nepal, Singapore, Bhutan, Sri Lanka, France and Mauritius.

    About RuPay

    RuPay is an Indian multinational financial services and payment service system that allows users to make electronic payments. Launched in the year 2012, RuPay is conceived and owned by The National Payments Corporation of India(NPCI). In June 2022, the Reserve Bank Of India(RBI) has approved the integration of UPI with RuPay credit cards with a vision of establishing a domestic and open multilateral system of payments. RuPay provides seamless electronic payments covering almost all Indian Banks.

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  • In December, UPI Transactions Reached a Record 16.73 Billion

    The volume of Unified Payments Interface (UPI) transactions increased by 8% month over month to reach 16.73 billion in December, the largest amount the digital system has seen since becoming live in April 2016. Additionally, the value rose from INR 21.55 trillion in November to INR 23.25 trillion, an 8% increase.

    In 2024, there were approximately 172 billion transactions, up 46% from 118 billion in 2023, according to data from the National Payments Corporation of India (NPCI). Compared to INR 183 trillion in 2023, transactions grew by 35% in value terms to over INR 247 trillion throughout the course of the year.

    Rise in Transactions in Various Segments

    A growth in person-to-merchant transactions (for purchasing products or services) caused the transactions to climb over the course of the year. UPI recorded 16.58 billion transactions in October, totalling INR 23.5 trillion, which was both its largest volume and value to date. The value was INR 20.64 trillion in September, with a volume of 15.04 billion.

    The daily transactions also went up from 516 million to 540 million in December compared to November. As a result, the daily value increased from INR 71,840 crore in November to INR 74,990 crore. Compared to December 2023, the December figures showed a 39% increase in volume and a 28% increase in value. Transactions through the Immediate Payment Service (IMPS) increased by 8% in December to 441 million, compared to 408 million in November and 467 million in October. Compared to INR 5.58 trillion in November and INR 6.29 trillion in October, this was an increase of 8% to INR 6.02 trillion in value terms. This represented a 6% increase in value over December 2023 and a 12% drop in volume compared to the previous year.

    December 2024 had 14.23 million daily transactions, up 5% from 13.6 million in November. This amounted to a daily transaction value of INR 19,405 crore, compared to INR 18,611 crore in November 2024.

    Growth in FASTag and AePS Transactions

    Compared to 359 million in November and 345 million in October, the amount of FASTag transactions increased by 6% to 382 million in December. In comparison to INR 6,070 crore in November and INR 6,115 crore in October, the value also rose by 9% to INR 6,642 crore. Compared to December 2023, this represented a 13% increase in value and a 10% increase in volume. December saw a 3% month-over-month growth in daily transactions, reaching 12.32 million.

     Transactions through the Aadhaar Enabled Payment System (AePS) increased by a small amount, from 92 million in November to 93 million in December. A slight increase in transaction value was also observed, reaching INR 24,020 crore from about INR 23,844 crore in November. The value was INR 32,493 crore, and the volume was 126 million in October. In November and December, there were 3.08 million and 3.02 million daily transactions, respectively. The volume and value of AePS transactions decreased by 1% and 5%, respectively, from the same period last year.

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  • The Market Cap Deadline for UPI Apps has been Extended by NPCI by 2 Years

    The deadline for imposing a transaction volume cap on Unified Payments Interface (UPI) apps has been extended by two years, to December 31, 2026, by the National Payments Corporation of India (NPCI). The NPCI has extended this deadline for the second time.

    The industry giants PhonePe and Google Pay, who handle the majority of UPI transactions in the nation, are anticipated to receive much-needed relief from the most recent development. According to NPCI data, the two handled roughly 47.8% and 37.02% of UPI transaction volumes in November, respectively. The deadline for current third-party application providers (TPAPs) to comply was extended by an additional two years by the apex payments authority after “considering various factors.” This occurs during a period of explosive rise in transaction volumes for the real-time payments system.

    Rise in UPI Transactions

    As of November, UPI had recorded 155.44 billion transactions to date this year, up 32.2% from 117.58 billion transactions in CY23. In November 2020, the NPCI first suggested a 30% cap on the number of transactions that UPI apps may handle. The current players were given two years to comply with the volume cap. In order to address possible issues like the risk of concentration among leading businesses, the apex payments authority sought to implement market cap. UPI apps, meanwhile, have expressed concern that a quota may restrict both their and UPI’s growth.

    Players Welcomed the Move

    “I firmly think that this market cap problem will be resolved by the market itself within the next two years.” According to Vishwas Patel, head of the Payments Council of India (PCI) and joint managing director of Infibeam Avenues, preventing the expansion of incumbents is not the best course of action and would have undoubtedly hindered the growth of UPI.

    “Since we firmly believe that customers will select from among the dozens of new UPI apps available, we applaud the NPCI’s extension of the market cap deadline for UPI apps. Paytm is making a comeback to regain its market share,” stated Patel. While elaborating further, Patel added that a number of innovative apps, like Cred, WhatsApp Pay, Bharat Interface for Money (BHIM), and Navi, are expanding rapidly. In August 2024, the NPCI split off BHIM to become NPCI-BHIM Services Ltd. (NBSL).

    The NPCI also removed the UPI user onboarding cap for WhatsApp Pay, the messaging juggernaut WhatsApp’s UPI platform. All Indian users will now be able to access the messaging giant’s UPI services. “WhatsApp Pay may now offer UPI services to all of its users in India thanks to this development,” the apex payments authority said in a statement released on 1 January.

    “We’re dedicated to making WhatsApp payments easy, dependable, and safe. Through a variety of use cases, such as bill payment, ticket booking, and shopping, we hope to improve users’ lives and make them more convenient,” the release stated further. A WhatsApp representative stated, “We want to continue supporting India’s digital and financial inclusion strategy while also accelerating the use of digital payments and UPI.

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  • The NPCI Approves Phi Commerce’s UPI Switch

    The National Payment Corporation of India (NPCI) has certified Phi Commerce, a fintech digital payment company, to provide UPI Switch to its business clients, mainly to maintain high transaction volumes. 

    Phi Commerce will be able to onboard enterprise customers more quickly thanks to UPI Switch, which will cut down on the turnaround time that comes with the current bank-driven approach for onboarding new clients. This will help their business clients to launch goods and services more quickly than they could in the past by allowing them to provide a wide variety of payment alternatives to their clients virtually instantly. 

    It will Help NPCI to Achieve its Goal

    UPI Switch is a vital tool that will assist NPCI in reaching its ambitious goal of one billion transactions per day within the next three to five years, according to Rajesh Londhe, co-founder and head of payments at Phi Commerce. By distributing traffic over several servers, UPI switches shorten processing times and avoid system overloads.

    By distributing the load among several servers, UPI Switch assists during periods of high demand when individuals scramble to make payments. It’s similar to adding more checkout lanes to a grocery store during peak hours to speed up traffic. Londhe continued, “In this manner, users experience speedy, effective transactions without delay.”

    Offering Enterprises Omnichannel Payment Solutions

    Businesses may use Phi Commerce’s omnichannel payment solutions to make payments easy and flexible from any consumer touchpoint, including browsers, smartphones, in-store, and remote. Phi Commerce, a Reserve Bank of India-licensed payment aggregator payment gateway (PAPG), provides a single omnichannel digital payment platform that meets the needs of businesses globally in terms of both B2B and B2C payments.

    The UPI Switch feature facilitates simple integration and provides risk management tools, on-premises or cloud-based architecture, and round-the-clock maintenance and support for dependability and uptime.

    Unified Payment Stack Solution

    UPI Switch is a unified payment stack solution that supports all other services that the NPCI has rolled out so far, including credit card linkages, recurring requirements, UPI Auto Pay, and quick refunds. As processing time decreases significantly, this add-on solution will also assist corporate clients in lowering their operating expenses while enhancing overall productivity and customer satisfaction. 

     In addition to controlling traffic, this function uses real-time fraud monitoring algorithms to keep an eye out for any odd or suspicious transactions. 

    With reaction times of less than a second, UPI switches manage billions of transactions. Additionally, it facilitates API-based interfaces, which allow for communication with a range of fintech platforms and financial institutions.

    What is NCPI?

    In order to establish a strong Payment & Settlement Infrastructure in India, the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) launched the National Payments Corporation of India (NPCI), an umbrella organisation for running retail payments and settlement systems in India, in accordance with the terms of the Payment and Settlement Systems Act, 2007.

    Given the usefulness of its goals, NPCI was established as a “Not for Profit” company in accordance with Section 25 of the Companies Act 1956 (now Section 8 of the Companies Act 2013). Its goal is to supply infrastructure for both electronic and physical payment and settlement systems for the whole Indian banking system. In order to increase operational efficiency and expand the reach of payment systems, the company is committed to implementing technological advancements in retail payment systems.

    ICICI Bank Limited, HDFC Bank Limited, Citibank N. A., HSBC, State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, and Bank of India are the ten primary promoter banks. In order to integrate additional banks from all industries, the shareholding was expanded to 56 member institutions in 2016. New RBI-regulated organisations, including payment banks, small finance banks, and payment service operators, were introduced in 2020. In accordance with the relevant requirements of the Companies Act of 2013, the shares were distributed in accordance with the issuance of equity shares on a private placement basis.

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  • In October, UPI Registered a 10% Month Over Month Growth

    Between September and October of 2024, the volume and value of transactions using the Unified Payments Interface (UPI) increased fairly. According to figures released by the National Payments Corporation of India (NPCI), the digital payment network logged 16.58 billion transactions in October, a 10% rise from 15.04 billion in September.

    From INR 20.64 lakh crore in September to INR 23.50 lakh crore in October, the transaction value increased by 14%. A 37% increase in transaction value and a 45% increase in transaction quantity year over year drove this gain.

    Average Daily Transaction Grows to 535 Million in October

    Additionally, from September to October, the average daily transaction volume climbed from 501 million to 535 million, with the daily transaction amount reaching INR 75,801 crore, a significant rise from INR 68,800 crore the month before.

    PhonePe continued to hold the top spot in the UPI market in India in September, accounting for 48% of all transactions. Second place went to Google Pay with 37.4%, and third place went to Paytm with 7%. The October market share figures are still pending.

    New Adjustments Made by the NPCI

    The parent firm of Paytm, One97 Communications Limited, was recently given permission by the National Payments Corporation of India (NPCI) to onboard new users onto its UPI network. It is anticipated that the Noida-based company will benefit from the new authorisation by increasing its user base and market share in the cutthroat UPI industry.

    Significant adjustments to UPI transaction restrictions have been made by NPCI in recent weeks. The restrictions for UPI Lite Wallet and UPI 123Pay have also been lifted, and the maximum amount for some UPI payment types has been raised to Rs INR lakh. With these changes, the Indian government hopes to support its ambitious aim of 1 billion transactions per day by 2026–2027 by promoting a higher use of digital transactions.

    How UPI has Become a Game-Changer in India’s Financial Market?

    The Unified Payments Interface is a ground-breaking technology that has completely changed the financial scene in India. It has greatly simplified digital transactions and increased the accessibility and convenience of money transfers.

     Additionally, UPI is essential for strengthening the Indian economy. This payment interface is equipped with a cutting-edge payment system, and it examines its features, advantages, and noteworthy influence on India’s economic development. The National Payments Corporation of India (NPCI) created the real-time payment system known as UPI. It makes it possible to combine several bank accounts into one mobile app. Fund transfers are made quick and simple by combining a number of banking functions.

    With more than 100 banks providing UPI-based services, UPI has gained widespread acceptance in India and enables instantaneous, round-the-clock interbank transactions.

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  • NPCI International to Establish Trinidad & Tobago’s UPI-Like Payments Platform

    To create a real-time payments platform for Trinidad and Tobago that is similar to the Unified Payments Interface (UPI), NPCI International Payments (NIPL) and the Ministry of Digital Transformation (MDT) have partnered strategically.

    The first country in the Caribbean to use India’s well-known instant payments network, UPI, is Trinidad and Tobago.

    According to a press release from NIPL, the partnership will enable person-to-person (P2P) and person-to-merchant (P2M) payments in real time, thereby increasing digital payments in the nation and promoting financial inclusion.

    The Service Will Bring More Transparency in the Region

    This relationship will improve accessibility, affordability, connectivity with domestic and international payment networks in the future, and interoperability by utilising technology and experiences from India’s UPI, according to the announcement.

    Real-time payments may change economies by increasing access to necessary financial services and decreasing dependency on cash, as NPCI International’s experience with UPI in India has shown.

    Ritesh Shukla, CEO of NPCI International, stated, “We look forward to working closely with the Ministry of Digital Transformation and the Central Bank in Trinidad and Tobago.”

    Additionally, NIPL delegations made multiple trips to Trinidad and Tobago in order to further negotiations. This programme is in line with India’s overarching goal of being the world leader in digital public infrastructure (DPI). In order to expedite DPI projects in underdeveloped countries, Prime Minister Narendra Modi announced the establishment of a Social Impact Fund and the Global Digital Public Infrastructure Repository (GDPIR) during India’s 2023 G20 Presidency.

    Trinidad and Tobago is anticipated to reap several advantages from the implementation of UPI, such as reduced transaction expenses, enhanced tax adherence, and enhanced clarity in public assistance initiatives. Significant financial innovation and economic development in the nation may be facilitated by this relationship.

    India’s UPI Success Is Now Travelling to Other Nations

    As the leader of India’s payments transformation, UPI is being introduced to other nations by the NPCI, the organisation that manages it, and the Indian central bank. Bhutan, Sri Lanka, Nepal, Singapore, and France are among the nations that are either utilising the open source platform to develop their own immediate payment systems or connecting to the UPI framework to make it compatible with their own payment systems.

    The Ministry of Digital Transformation and the Ministry of Finance are excited to begin this important collaboration with NIPL in order to establish a digital payment system for Trinidad and Tobago, according to a spokeswoman for the Ministry of Digital Transformation in Trinidad and Tobago.

    Based on India’s UPI, the digital payment platform will support Fintech innovation and improve the technical resilience of the existing payment infrastructure by offering a supplementary, non-competitive digital payments platform that reduces the need for cash and increases security.

    “Furthermore, if implementation is effective, it will help our unbanked citizens become financially included. We would like to express our gratitude to the Central Bank of Trinidad and Tobago for being a key participant and strategic partner in this significant project. We are excited to work together with NPCI International to aggressively change the current payments landscape and create a cutting-edge digital payments ecosystem,” spokesperson added further.

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  • The Implementation of a 30% UPI Cap Is Highly Doubtful

    With just over four months to go until the deadline, industry insiders have expressed doubts about the proposed 30% market share cap in the Unified Payments Interface (UPI) category, according to multiple media sources. Multiple newcomers to UPI have been informed, informally, that the limit is not going to be implemented. As a result, they have begun to reassess their growth and investment strategies, according to those briefed on the situation.

    According to earlier media reports, new players in the UPI industry are holding off on making large expenditures until they have a better understanding of the market share rule. UPI payments are dominated by PhonePe and Google Pay.

    However, the National Payments Corporation of India (NPCI), which oversees the UPI railway, has not received any official word from the government regarding its stance.

    Customers’ Choice

    Reportedly, the regulator is of the opinion that new entrants have not been able to reduce the dominance of the top two UPI services, therefore it is left with few choices regarding the implementation of the December 31st deadline.

    In response to enquiries, neither NPCI nor the ministry of electronics and IT provided any information. Implementing this law (market cap) will require significant planning, according to several experts. It cannot be done in a day due to the disruptive nature of the process.

    The Growth Trajectory

    Both the government and NPCI are deeply committed to the expansion of UPI, which reached 14 billion monthly transactions in May. If people keep using the same two or three platforms, what options do we have? So many new entrants are able to set up shop, but they haven’t made a dent just yet.

    In July, out of the 14.4 billion UPI transactions, more than 85% were processed through Walmart’s PhonePe and Google Pay. Google Wallet had 5.3 billion transactions, whereas PhonePe had 6.9 billion. With 1.1 billion UPI transactions, Paytm (One 97 Communications) came in third, and Cred (142 million payments) came in fourth.

    The Reserve Bank of India (RBI) placed restrictions on Paytm Payments Bank in February, making arguments about the market share ceiling more prominent. Paytm is the third largest UPI operator. On February 5, a prominent media outlet said that Paytm’s problems will cause users and businesses to switch to the two most popular applications.

    Why the Cap Cannot Be Implemented?

    To prevent the UPI ecosystem from becoming overly dependent on only one or two platforms, NPCI first proposed a market share cap. In December 2022, NPCI delayed implementation for two years following multiple rounds of negotiations and requests from key corporations operating such apps.

    Some industry executives and specialists in the field have voiced concerns that imposing a market share cap might cause systemic disruption and be technically challenging to achieve.

    Conversely, NPCI has been facilitating the development of UPI solutions by numerous consumer internet platforms with huge user bases, enabling them to become third-party application providers.

    Flipkart, the e-commerce platform that was once PhonePe’s parent company, Groww, Slice, and the Tata Neu superapp are all part of this group. Another company that has introduced its UPI offering through the plug-in channel is Swiggy, a food and grocery delivery firm that has partnered with banks. Similarly, Ola Consumer is in the process of planning a same system.

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  • Swiggy Now Includes Non-Metro Eateries in Its Gross Value Service Fee Policy

    A renowned media house has reported that food tech company Swiggy, which is preparing for an initial public offering (IPO), has expanded its service fee policy to incorporate the gross order value (GST plus packaging fees) for restaurants located outside of metro areas. As a result of the change, its restaurant partners in those areas will earn a higher commission.

    In the past, restaurants in bigger cities were already charged a service fee (also called a commission) based on the gross value of their operations, whereas smaller towns and cities had to figure it out using the net value.

    How This Move Will Be Implemented?

    The service fee will be applied to the gross value of each order by Swiggy starting August 14, in accordance with the merchant conditions. The business informed its restaurant partners in a letter that the service price owed to Swiggy will slightly rise due to this adjustment being implemented evenly across the platform.

    The study states that around 1,000 eateries will be impacted by this regulation shift. “Contracts are usually tailored individually, but this latest update will be implemented for around 1,000 partners at this stage,” another media house reported in its recently published article.

    It is usual protocol, according to a Swiggy representative, to communicate with a select set of partners after negotiations; this is because each partner has a customised business agreement that is tailored to their specific needs.

    In contrast to Swiggy, which normally charges restaurants a commission of 17–25%, Zomato, an industry rival, charges payment gateway costs independently.

    Disputes Arise Around Commission Uniformity

    Swiggy has around 350,000 restaurants listed on its network. The move is to standardise prices on gross value orders across all of them. Nevertheless, numerous restaurant partners will be impacted, thus the adjustment has ignited a discussion.

    Sustainable techniques that are good for delivery services and restaurants alike should be seriously considered. Gaining market share through raising discounts or commissions alone might not be sustainable.

    Brand value, order numbers, and other indicators are usually considered during individual contract negotiations between meal delivery platforms and restaurant partners.

    There is constant debate over the commission that meal delivery companies like Zomato and Swiggy charge because of the substantial effect it has on restaurants’ bottom lines.

    Easing the Payment Services

    The newly integrated Unified Payments Interface (UPI) Plug-in service was introduced by Swiggy on Wednesday. This service is powered by the National Payments Corporation of India (NPCI) and Juspay.

    This functionality, which is marketed as Swiggy UPI, enables clients to make payments more quickly from within the app, thereby lowering the amount of time it takes to complete a transaction from more than 15 seconds to only five seconds.

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