Indian man who’s challenging WhatsApp, now takes up new UPI project to fight Paytm, PhonePe…

After taking on WhatsApp with Arattai, Zoho’s Sridhar Vembu is now set to challenge India’s digital payment giants with a new UPI-powered app.

Zoho’s founder, Sridhar Vembu, who earlier introduced Arattai as an alternative to WhatsApp, is now preparing to take on India’s leading digital payment platforms like Paytm and PhonePe. The company is reportedly working on Zoho Pay, a Unified Payments Interface (UPI)-based application, which aims to reshape how users and businesses handle online transactions.

Zoho is set to launch Zoho Pay, a new UPI app to rival Paytm and PhonePe. (MINT)

By MD Ijaj Khan

Ijaj Khan is a technology journalist and Senior Content Producer at Hindustan Times, with over three years of experience covering the consumer technology industry. His work spans smartphones, laptops, wearables, gaming, appliances and AI - from hands-on reviews, comparison and buying guides to breaking news and in-depth features that help readers cut through the noise and make informed decisions. Before joining HT Tech, he worked with Jagran New Media, where he sharpened his instincts for fast-paced digital reporting. He holds a Post Graduate Diploma in English Journalism and Mass Communication from the Indian Institute of Mass Communication (IIMC), Delhi. Whether he's testing the latest flagship smartphone, tracking a major AI announcement, or putting a gaming laptop through its paces, Ijaj approaches every story with the same goal - making technology feel relevant and easy to understand for everyday users, not just enthusiasts. When he's not in front of a screen for work, he's usually travelling to a new city, hunting for great food, or keeping tabs on what's next in tech before everyone else catches on.

Read moreRead less

Currently under internal testing, Zoho Pay will be launched in phases across India over the next few months. The new payment platform will not only function as a standalone app but will also be integrated into Arattai, Zoho’s homegrown messaging platform. This feature will enable users to send and receive money directly through the chat function, unifying communication and payments in one place.

Zoho Pay: Payment Features and Business Tools

Furthermore, Zoho Pay is planning to offer multiple payment modes, including UPI, debit and credit cards, net banking, and Zoho’s Banking Connect service. The platform will support recurring payments through UPI, which could help businesses manage subscriptions and regular billing efficiently.

The app is designed to simplify digital payments for individuals and businesses. Users will be able to accept payments via invoice emails, payment links, custom payment pages, or client portals. Businesses that handle high transaction volumes can manage chargebacks, track disputes, and submit related evidence through a single dashboard.

According to Zoho, settlements through Zoho Pay will be faster and transparent, with no hidden charges. The platform will also generate detailed, customisable reports covering transaction histories, refunds, and payment summaries.

Zoho Pay will integrate seamlessly with existing Zoho products such as Zoho Books, Zoho CRM, and Zoho Invoice, which lets businesses collect payments without leaving those platforms. For companies not using Zoho tools, simple API options will make it easy to embed payments into their websites.

Zoho Pay: Transaction Fees and Charges

Regarding transaction fees, UPI payments will carry a 0.5% platform charge, while card, net banking, and RuPay transactions will be subject to a 2% fee. Bank transfers will cost 1% or Rs. 10, whichever is lower, and corporate credit card payments will have a 2.75% charge.

On the security front, according to the company, Zoho Pay follows enterprise-grade standards. It is PCI DSS Level 1 and ISO 27001:2022 certified, which ensures data protection during storage and transmission through TLS 1.2/1.3 and AES-256 encryption. The system also uses real-time monitoring, intrusion detection, and fraud prevention tools to protect users’ financial data.