Paytm Partners with Bharat Taxi to Enable UPI Payments for Cab Rides Across India

India’s fast-growing digital payments ecosystem has expanded further into the mobility sector with Paytm partnering with Bharat Taxi, a government-supported ride-hailing platform. The collaboration aims to simplify ride payments for passengers while ensuring faster and more seamless payouts for drivers.

The announcement comes at a time when India’s Unified Payments Interface (UPI) continues to dominate retail digital transactions, handling billions of monthly transactions and reshaping the way everyday payments are made. With cab services increasingly shifting toward cashless models, this partnership reflects a broader industry shift toward integrated fintech-enabled mobility.

Overview of the Paytm–Bharat Taxi Partnership

Paytm has entered into a strategic partnership with Bharat Taxi to integrate digital payment solutions and financial services across the ride-hailing platform. The agreement focuses on enabling UPI-based payments for passengers while also supporting drivers with smoother financial processes.

Bharat Taxi was launched last week by Union Home and Cooperation Minister Amit Shah. The platform operates under a driver-owned cooperative structure and does not charge commission from drivers. This means drivers — referred to as Sarathis — retain their full earnings from each ride.

Unlike traditional ride-hailing aggregators that deduct a percentage commission per trip, Bharat Taxi’s cooperative approach is designed to promote income fairness and transparency.

How UPI Payments Will Work on Bharat Taxi

In-App UPI Payments for Passengers

Under the partnership, Paytm will power digital transactions on the Bharat Taxi app. Passengers will be able to pay for their rides using UPI directly within the application.

UPI has become India’s preferred digital payment method due to its instant settlement, zero transaction fees for users, and interoperability across banks. Integrating UPI into Bharat Taxi ensures convenience and eliminates the need for cash handling.

QR Codes, Soundbox and Card Machines

In addition to in-app payments, Paytm will provide its payment ecosystem tools including:

• Paytm-pioneered QR codes

• Soundbox devices for instant audio payment confirmation

• Card machines for debit and credit card acceptance

These solutions ensure that passengers have multiple payment options while drivers receive real-time confirmation of transactions.

Mini-App Integration on Paytm Platform

The two companies are also working on placing the Bharat Taxi mini-app within the Paytm app. This integration is expected to enhance visibility, improve discoverability, and increase user adoption.

By leveraging Paytm’s large user base and payments network, Bharat Taxi can expand its reach more efficiently.

Focus on Drivers and Faster Payouts

Cooperative Model Without Commission

Bharat Taxi’s business model is built around driver ownership. Unlike private aggregators that take a commission from each ride, Bharat Taxi allows drivers to keep their entire fare earnings.

This cooperative approach aims to:

• Promote financial stability

• Ensure transparent fare distribution

• Provide long-term income security

The absence of commission deductions could make Bharat Taxi attractive to drivers seeking better earnings retention.

Faster Settlements Through Digital Infrastructure

The partnership with Paytm is expected to significantly strengthen Bharat Taxi’s payments backbone. With UPI’s instant settlement capability, drivers can receive quicker payouts compared to traditional settlement cycles.

Real-time digital transactions also reduce the operational risks associated with cash handling and improve record-keeping efficiency.

Enhancing Financial Inclusion

Both companies emphasized that the collaboration goes beyond payment acceptance. It also focuses on onboarding drivers to digital financial systems.

Drivers will be supported with:

• UPI onboarding

• Access to insurance services

• Other essential financial services

By integrating financial tools directly into the ride-hailing ecosystem, the initiative aligns with India’s broader financial inclusion goals.

Paytm stated that this partnership is part of its broader strategy to simplify everyday transactions and expand access to digital financial services.

What the Companies Said

A Paytm spokesperson said:

“Bharat Taxi is a thoughtful initiative supported by the Government of India that places drivers at the centre of the mobility ecosystem. We are humbled by the opportunity to contribute our payments infrastructure to make the service convenient and reliable for both passengers and drivers across cities in India. Through this collaboration, we aim to support secure and seamless payment experiences that enhance everyday travel and improve ease of use for all stakeholders.”

A Bharat Taxi spokesperson said:

“We are building a cooperative, driver-owned ride-hailing platform designed to serve both passengers and drivers effectively. We have partnered with Paytm to strengthen our payments infrastructure and to support drivers with smoother onboarding, access to insurance, and other essential services.”

Why This Move Matters in India’s Digital Economy

India’s mobility and fintech sectors are increasingly converging. With UPI becoming the backbone of small-value and high-frequency payments, its integration into ride-hailing platforms reflects the normalization of cashless urban transport.

Key implications include:

• Reduced dependency on cash in public transport

• Faster income realization for gig workers

• Stronger digital transaction traceability

• Greater adoption of fintech services among drivers

The partnership also signals growing collaboration between government-supported platforms and private fintech companies.

Broader Industry Context

The ride-hailing market in India has traditionally been dominated by private aggregators that operate on commission-based models. Bharat Taxi’s cooperative approach introduces a different structure focused on driver welfare.

Simultaneously, fintech companies are increasingly embedding payment and lending solutions directly into service platforms. By integrating payments, onboarding, and financial services into a single ecosystem, companies aim to create end-to-end digital journeys for users.

This Paytm–Bharat Taxi tie-up reflects that broader shift toward platform-based financial ecosystems.

Conclusion

The partnership between Paytm and Bharat Taxi marks a significant step in integrating digital payments with cooperative ride-hailing in India. By enabling UPI payments, QR codes, and card-based transactions, the initiative simplifies ride payments for passengers while ensuring faster and more transparent payouts for drivers.

With Bharat Taxi operating on a no-commission, driver-owned model, and Paytm providing robust digital infrastructure, the collaboration aims to strengthen financial inclusion and operational efficiency across India’s mobility sector.

As digital payments continue to expand across industries, such integrations could redefine how mobility platforms support both users and service providers in the years ahead.