Paytm, Bharat Taxi roll out UPI payments for cab rides. How it will work and more

Paytm on Thursday entered into a partnership with Bharat Taxi, a government-supported ride-hailing platform, to bring digital payments and financial services to drivers and passengers using the app. The move is aimed at making ride payments easier for customers and ensuring faster payouts for drivers, according to a company release.

Bharat Taxi was launched by Union Home and Cooperation Minister Amit Shah last week. The platform works on a driver-owned cooperative model and does not charge commission, allowing drivers — known as Sarathis — to keep their full earnings from every ride.

How the payments will work

Under the partnership, Paytm will provide its payment systems across the Bharat Taxi platform. Passengers will be able to pay for rides using UPI within the app, as well as through Paytm-pioneered QR codes, Soundbox and card machines.

The two sides will also work on onboarding drivers to UPI and plan to place the Bharat Taxi mini-app on the Paytm platform. Both companies said they will work together to improve visibility of the service and push financial inclusion for drivers.

Focus on drivers and quicker payouts

Bharat Taxi is built on a cooperative model that puts drivers at the centre. Unlike private cab aggregators that take commissions, Bharat Taxi allows drivers to retain their full earnings from each ride. The model is meant to support transparency, fair income and long-term financial stability.

The partnership with Paytm is expected to strengthen Bharat Taxi’s digital payments system, help drivers receive quicker payouts and make daily operations simpler and more secure for drivers across the country.

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.”

Paytm said the tie-up is part of its broader push to use its payments and financial services network to simplify everyday transactions and expand financial inclusion.