Ola launches a new feature to allow customers to pay directly to drivers from the app

Ride hailing giant Ola Cabs is rolling out a new feature that will enable its customers to make direct UPI payments to drivers through the Ola app.

The feature will be initally launched in Bengaluru by the end of this week and expected to be available nationwide by December's end, according to founder & CEO Bhavish Aggarwal. He said the new feture aims to streamline the payment process, eliminating the need to use third-party payment apps.

How does the new payment system work?

According to Ola, The new system will allow users to create a UPI ID within the Ola app and link their bank accounts for seamless transactions.

After each ride, customers can complete the payment by entering their UPI PIN, ensuring a secure transaction.

Notably, This method removes the hassle of entering card details, IFSC codes, or recharging a wallet. Additionally, customers have the option to pay by scanning a QR code displayed on the driver's app.

Ola's partnership with ONDC

The company has recently partnered with the Open Network for Digital Commerce (ONDC) to offer last-mile delivery services for various categories, including food, groceries, and pharmaceuticals.

Ola said the partnership also contemplates extending mobility services through ONDC. Moreover, the platform has integrated the option for customers to purchase Ola electric scoote directly through the app.

What is UPI plugin?

UPI Plugin was introduced by NPCI in July 2022 with the aim of enabling faster, seamless payments without needing third-party apps.

Ola's move to integrate UPI payments directly within its app places it in direct competition with other ride-hailing services like Namma Yatri, which also offers a similar feature.