Swiggy, PhonePe join hands for simplified payment

While Swiggy adds one more UPI payment option, Flipkart-owned digital wallet forays into food delivery market

Online food ordering and delivery startup Swiggy has joined hands with Flipkart's fintech arm, PhonePe, to offer simplified payment options to its customers.

Swiggy caters to over 25,000 restaurants across 12 cities through its network of 20,000 doorstep delivery staff. The company is working on cutting down the number of cash-on-delivery transactions with the introduction of easy and secure digital payment methods, which it believes will also help its delivery boys save time.     

Both companies are working on a single-window checkout, wherein the customers can pay for their food orders using the Swiggy app, the companies said in a joint statement.

"The tie-up with PhonePe will help our customers use simplified payment options such as the UPI and PhonePe wallet. These are fast, safe and cashless," said Anuj Rathi, Vice-President, Product, Swiggy.

More than 60,000 online and offline merchants, including MakeMyTrip, PVR, McDonald's, ClearTrip, Myntra, KFC, CCD, Apollo Pharmacy and Barista, currently use PhonePe, which was launched in 2015.

"Swiggy has become very popular for online food orders. We are expecting to scale up with this deal," said Pradeep Dodle, Head of Business Development, PhonePe. This is PhonePe's first tie-up in the Indian food delivery market.

The payment option is integrated in Swiggy's Android app, and will soon be available on its website, mobile site and the iOS platform.To encourage users to use PhonePe, Swiggy is offering a 25 per cent cashback of up to Rs 100 on their first order. For subsequent orders, it will offer Rs 50 as cashback.

Swiggy, which is on an expansion spree, has recently partnered with ICICI Bank to roll out two payment solutions -- automated cash deposit machines at banks and ATM locations and UPI-based instant fund transfers.