In a significant move to streamline the digital payment experience for its riders, Ola Cabs has introduced an in-app payment feature that seamlessly integrates the Unified Payment Interface (UPI) plugin. This innovative feature, announced on November 30th by Ola’s founder and CEO Bhavish Aggarwal, enables riders to make direct payments to drivers without the need for switching between apps.
The UPI-powered payment option is scheduled to roll out by the end of the week in Bengaluru, with nationwide availability by the end of December. Riders can effortlessly create their UPI ID and link their bank accounts directly within the Ola app, eliminating the hassle of entering card details, IFSC codes, or recharging wallets.
“All that’s required is for the user to key in their set UPI PIN after every ride for safe and secure transactions,” Ola stated in a blog post. “With no hassle of entering card details, IFSC code or recharging a wallet, this aims at making payments easier for customers and is absolutely safe.”
Additionally, riders can opt to scan a QR code displayed by the driver on their app, effectively transforming Ola’s 2 million-strong driver fleet into UPI merchants overnight.
Ola’s move follows a similar initiative by Namma Yatri, a new entrant in Bengaluru’s ride-hailing scene, which utilizes JusPay to enable direct payments to drivers without the need for third-party apps.
The introduction of UPI Plugin, a service launched by the National Payments Corporation of India (NPCI) in July 2022, has paved the way for these seamless payment solutions. UPI Plugin, also known as merchant SDK (software development kit), empowers online merchants to integrate virtual payment addresses for direct money collection without relying on payment apps.
This simplified approach fosters faster, more convenient transactions, eliminating the need for customers to navigate through third-party apps. Companies like Swiggy and Zomato have already integrated UPI Plugin into their platforms.
Payment gateways like PayTm, Razorpay, and JusPay have also embraced UPI Plugin, offering it to their merchants. In May 2023, Razorpay, in collaboration with Axis Bank and the National Payments Council of India (NPCI), introduced Turbo UPI. PayTm followed suit in May, launching an UPI SDK that enables existing merchants to accept direct payments within their apps.
These innovative solutions aim to accelerate UPI payments and minimize potential payment failures. Prior to UPI Plugin, merchants wishing to integrate UPI payments into their platforms (website or app) were required to become a Third-Party App Provider (TPAP) like Google Pay or PhonePe.
Ola’s integration of UPI Plugin marks a significant step towards revolutionizing the digital payment landscape for ride-hailing services, offering riders a streamlined, secure, and convenient payment experience.
