The SDK feature will be distributed to merchants via Paytm Payments Services Limited and will be built on Paytm Payments Bank’s tech stack
Paytm UPI SDK will allow customers to directly make UPI payments from within the app of online merchants without redirecting them to the Paytm app
Paytm also plans to roll out support for new payment types such as UPI LITE and UPI on RuPay credit cards on the SDK soon
Fintech major Paytm on Tuesday (May 23) rolled out its UPI SDK (Software Development Kit) offering which will enable online merchants to streamline their checkout process.
Paytm UPI SDK will allow customers to directly make UPI payments from within the app of online merchants without redirecting them to the Paytm app. In essence, users can simply pay directly by entering the UPI PIN without leaving the merchant app.
In a statement, the company said that the SDK product will be distributed to Paytm’s existing cohort of online merchants via its subsidiary Paytm Payments Services Limited. The new offering will be built on the tech stack of Paytm Payments Bank.
“This leads to fewer clicks, faster transactions, far higher success rates and increased customer retention,” said Paytm.
The move will likely help Paytm retain its third-party payment ecosystem and prevent customers from moving to the payments interface of online merchants like Zomato, which are developing their own UPI interface.
The listed fintech startup claimed that the new feature will make UPI payments four-times faster with 5X reduction in the number of taps. The new service will eliminate any external redirection, making the requirement to switch between merchant and payment apps redundant for completing payments, it added.
“… 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,” said Paytm Payments Services CEO Nakul Jain.
The fintech startup also plans to soon roll out support for new payment types such as UPI LITE and UPI on RuPay credit cards for the SDK. UPI SDK will also allow online businesses to offer services such as checking account balance, creating VPA handles, setting and resetting UPI PIN right within the merchant app prior to making payments.
The company also claimed that the new feature will enable businesses to integrate UPI payment system into their existing apps via low-code approach and fully customisable UI themes.
A Spree Of New Launches
The fintech major has unveiled a slew of new offerings in the past few months. On Monday, Paytm’s investech vertical Paytm Money launched a new bonds platform to enable retail investors to invest in the debt market.
Prior to that, One97 Communications, Paytm’s parent firm, also announced a partnership with the State Bank of India (SBI) to launch Paytm SBI Card on the RuPay network.
Earlier this month, it was also reported that the fintech major was looking to venture into cross-border payments with the launch of ‘UPI International’ service on its app soon.
In March, Paytm revamped its entire payments platform and unveiled its indigenously-built tech stack that it said can handle up to 10X more payments.
Meanwhile, Paytm’s net loss declined 78% year-on-year (YoY) to INR 167.5 Cr in the fourth quarter (Q4) of the financial year 2022-23 (FY23). Its revenue stood at INR 2,334.5 Cr in Q4 FY23, up 51% YoY.
The boom in the digital lending vertical is driving Paytm’s growth in recent times. Paytm disbursed 41 Lakh loans worth INR 4,115 Cr in April 2023, a rise of 56% and 148% YoY, respectively. As a result, most brokerages have given a thumbs up to the fintech firm.
Shares of Paytm closed 1.78% higher at INR 719.55 on the BSE on Tuesday (May 23).