Zomato, the food and grocery delivery company, has temporarily halted the onboarding of new users on its Unified Payments Interface (UPI) platform. The sign-up option for Zomato UPI has been disabled for the past few weeks. While the service remains available for existing users, Zomato decided to suspend onboarding new users to incorporate feedback and improve the onboarding process. A Zomato spokesperson confirmed that they plan to resume enrolling new users by the end of the month.

Zomato introduced its UPI offering in May to enable seamless payments for users on its platforms without the need to switch apps. Alongside this, Zomato Pay allows customers to make payments at selected restaurants using various payment options. In August 2021, Zomato established a subsidiary called Zomato Payments Pvt Ltd to provide digital payment services. In 2022, Zomato saw an increase in annual transacting customers for food ordering.

Zomato's decision to launch its own UPI offering aligns with the National Payments Corporation of India's efforts to expand the UPI ecosystem. The digital payments landscape is currently dominated by PhonePe and Gpay, accounting for the majority of UPI-based transactions. Flipkart, an e-commerce company, is also reportedly working on its own UPI service, which holds significance following PhonePe's separation as a standalone entity under Walmart.