Paytm, a leading fintech player, announced on Tuesday the rollout of its UPI SDK (Software Development Kit) offering, aimed at streamlining the checkout process for online merchants. With the Paytm UPI SDK, customers can make UPI payments directly within the app of online merchants, without being redirected to the Paytm app. This means users can conveniently complete transactions by entering their UPI PIN without leaving the merchant app.
The new SDK product will be distributed to Paytm’s existing online merchants through its subsidiary, Paytm Payments Services Limited. Leveraging the technology stack of Paytm Payments Bank, the company expects the UPI SDK to result in faster transactions, higher success rates, and increased customer retention.
By providing a seamless payment experience, Paytm aims to retain its position in the third-party payment ecosystem and prevent customers from migrating to the UPI interfaces of other online merchants such as Zomato, who are developing their own payment systems.
According to Paytm, the UPI SDK will make UPI payments four times faster, reducing the number of taps by five times. It eliminates the need for external redirection and eliminates the hassle of switching between merchant and payment apps to complete transactions.
Paytm Payments Services CEO Nakul Jain highlighted the benefits of the Paytm UPI SDK, stating, “… Now, our pioneering Paytm UPI SDK allows businesses to accept payments directly on their app. Doing away with redirection to a bank website or another payment app leads to improved transaction success rates and ensures that users enjoy seamless payments.”
Paytm also plans to extend support for new payment types such as UPI LITE and UPI on RuPay credit cards for the SDK. The UPI SDK will enable online businesses to offer additional services within their apps, including checking account balances, creating VPA handles, and setting or resetting UPI PINs before making payments.
This latest launch adds to Paytm’s recent series of offerings, including the launch of a bonds platform through its investech vertical, Paytm Money, and the partnership with the State Bank of India (SBI) to launch the Paytm SBI Card on the RuPay network. Paytm’s net loss has decreased by 78% YoY, while revenue has increased by 51% YoY in the fourth quarter of FY23.
The growth of digital lending has been a key driver of Paytm’s recent success, with the company disbursing 4.1 million loans worth INR 4,115 crore in April 2023, marking a significant increase compared to the previous year. As a result, the fintech firm has received positive evaluations from various brokerages.
