Paytm on Thursday inked a partnership with Bharat Taxi, a government-backed ride-hailing platform, to offer digital payments and financial services to drivers and passengers using the app. The move aims to make it easier for customers to pay for rides and ensure faster payments for drivers, according to a company statement.

Bharat Taxi was launched by Union Home and Cooperation Minister Amit Shah last week. The platform operates on a driver-owned, commission-free cooperative model, allowing drivers, known as Sarathis, to keep their full earnings from each trip.

How payments will work

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

The two parties will also work on onboarding drivers to UPI and plan to place the Bharat Taxi applet on the Paytm platform. The two companies said they will work together to improve the visibility of the service and drive financial inclusion for drivers.

Focus on drivers and faster payments

Bharat Taxi is based on a cooperative model that puts drivers at the center. Unlike private taxi aggregators who charge commissions, Bharat Taxi allows drivers to retain their entire earnings from each trip. The model aims 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 faster payments and make day-to-day operations simpler and safer 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 center of the mobility ecosystem. We are honored by the opportunity to contribute our payment infrastructure to make the service convenient and reliable for both passengers and drivers in cities across India. Through this collaboration, we aim to support secure and seamless payment experiences for all parties.” interested.”

A Bharat Taxi spokesperson said, “We are building a driver-owned cooperative transport platform designed to serve both passengers and drivers effectively. We have partnered with Paytm to strengthen our payments infrastructure and 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.