In an era where digital payments dominate personal finance, traditional business expense systems like cash, petty cash, prepaid cards, or company wallets still lag in convenience, security, and visibility. CotoPay has emerged in India as a futuristic solution that bridges this gap by leveraging UPI (Unified Payments Interface) — the country’s most widely trusted real-time payment method — to transform how businesses manage expenses at scale.
This article explains everything you need to know about CotoPay in 2026 — from its core features and benefits to how it works, business use cases across industries, implementation process, pricing insights, and answers to key frequently asked questions.
Table of Contents
Section 1: What Is CotoPay?
CotoPay is a **fintech platform designed to help businesses streamline expense management by issuing digital, purpose-specific vouchers powered by India’s e-RUPI infrastructure via UPI.
Unlike traditional business payment tools, CotoPay does not require employees or partners to have new apps, physical cards, or separate wallets. Instead, it issues UPI e-RUPI vouchers — prepaid digital instruments that are redeemable through the existing UPI ecosystem (e.g., Google Pay, PhonePe, BHIM, etc.). These vouchers can be locked for particular categories such as fuel, meals, travel, telecom, health & wellness, or general expenses.
Key Characteristics:
Built on the National Payments Corporation of India’s e-RUPI standard.
Seamless integration with existing UPI apps.
Purpose-locked vouchers that ensure funds are spent as intended.
Designed for businesses of all sizes and industries.
Section 2: The Problem CotoPay Solves
2.1 Legacy Expense Challenges
Traditional business expense solutions — like paper vouchers, petty cash, prepaid cards, or corporate credit cards — suffer from multiple issues:
Lack of transparency and traceability
Slow reconciliation processes
High risk of fraud and misuse
Additional administration and paperwork
2.2 The Need for Digital, Traceable Spend Management
With rising digitization and the ubiquity of UPI in India (over 6.5 crore merchants accept UPI payments), there was an opportunity to standardize business spend tools using the same trusted ecosystem employees already use daily. CotoPay fills this gap by providing:
End-to-end digital visibility
Purpose-based spending control
Real-time analytics
Seamless reconciliation
This approach reduces reconciliation time and fraud risk while maximizing operational transparency and efficiency.
Section 3: Key Features of CotoPay
CotoPay’s platform comprises robust features that differentiate it from legacy systems:
3.1 UPI e-RUPI Voucher Issuance
Businesses can issue prepaid digital vouchers that are:
Linked to a specific spending purpose (e.g., fuel only at petrol stations)
Redeemable through any UPI-enabled app
Automatically visible to employees once issued
Non-transferable
This structure ensures funds are used exactly as intended and simplifies compliance.
3.2 Purpose or Category Lock
One of the standout features is the ability to lock vouchers by:
Merchant category (e.g., food, travel)
Specific merchant outlets
Time validity and redemption rules
This function prevents misuse and ensures strict policy compliance.
3.3 No Additional App or Wallets
Employees and partners do not need to install new apps or manage separate wallets. Once a voucher is issued to a mobile number linked with UPI, it appears in their existing UPI app and can be used instantly.
3.4 API Integration and Dashboard
For businesses with existing ERP/HRMS systems, CotoPay offers:
Plug-and-play APIs to automate voucher issuance
Dashboards for administrators to view real-time spend data
Analytics and reporting for deeper financial insights
3.5 Scalability
CotoPay supports:
Small firms to large enterprises
Fleets with hundreds of drivers
Complex organizational structures with multi-level approval flows
Section 4: How CotoPay Works (Step-by-Step)
Understanding the flow of how CotoPay operates helps appreciate its efficiency.
Step 1: Business Onboarding
A company signs up for CotoPay and links its bank account to the platform. No KYC is required for individual beneficiaries (employees or drivers).
Step 2: Voucher Creation
The business administrator:
Selects a spending category (e.g., fuel, meals).
Enters voucher amount and optional validity dates.
Issues vouchers to employee mobile numbers.
Step 3: Voucher Issuance
Upon issuance:
The voucher amount is blocked in the company’s bank account (not transferred).
Vouchers automatically appear in the beneficiaries’ UPI apps.
Step 4: Payment
The beneficiary scans any merchant’s UPI QR code and selects the voucher as the payment method.
If the merchant category matches the voucher rules, the transaction proceeds like a regular UPI payment.
Step 5: Reconciliation
Once the payment is successful:
Money is moved from the company’s account only at the point of actual payment.
The dashboard is instantly updated with transactional details.
Unspent vouchers automatically expire, releasing blocked funds back to the company account based on preset rules.
Section 5: Major Benefits of Using CotoPay
CotoPay offers significant advantages over traditional systems:
5.1 Enhanced Control and Compliance
Purpose-locked vouchers ensure funds are spent as intended.
Approval workflows reduce misuse.
5.2 Operational Efficiency
Eliminates paper-based expense reporting.
Reduces administrative workload and reconciliation delays.
5.3 Real-Time Visibility and Reporting
CotoPay’s dashboard provides transaction-level detail — merchant, time, category, amount — enabling deeper financial insight and smarter budgeting.
5.4 Employee Convenience
Workers use familiar UPI apps, making adoption seamless and frictionless. No additional apps, cards, or wallets are required.
5.5 Cost Reduction
By digitizing petty cash and expense reporting:
Cash handling is reduced.
Fraud and leakage are minimized.
Reconciliation costs drop significantly.
5.6 Scalability
CotoPay supports businesses of any size — from startups to enterprises — across multiple locations or geographies.
Section 6: CotoPay in Action (Use Cases)
6.1 Corporate Expense Management
CotoPay helps HR and finance teams issue meal, travel, telecom, and accommodation vouchers directly to employees. This replaces manual advance systems and accelerates reimbursements process.
6.2 Fleet Fuel Expense Control
Transport businesses can issue fuel vouchers to drivers that are locked to petrol stations of choice, reducing fuel theft and misuse.
6.3 Petty Cash Replacement
Instead of distributing cash for small expenses, businesses can issue UPI vouchers for petty cash — cutting reconciliation time and error margins.
6.4 Rewards & Loyalty Programs
CotoPay’s voucher system could be extended to reward employees or partners with digital incentives redeemable via UPI, enhancing engagement.
Section 7: Security and Compliance
CotoPay is built using industry-standard security protocols:
Two-layer encryption for data safety.
Built on NPCI and RBI-governed e-RUPI UPI standards.
No funds leave the company account until spending occurs.
This offers strong protection against fraud while maintaining transparency.
Section 8: CotoPay vs Traditional Expense Tools
| Feature | CotoPay | Prepaid Cards | Cash | Expense Apps |
|---|---|---|---|---|
| Purpose Locking | ✔ | ✘ | ✘ | ✘ |
| Real-Time Tracking | ✔ | Partial | No | Yes |
| UPI Integration | ✔ | No | No | Varies |
| No App Required for End User | ✔ | ✘ | ✔ | ✘ |
| Automated Reconciliation | ✔ | ✘ | No | Partial |
CotoPay delivers stronger control, usability, and compliance for modern digital businesses.
Section 9: Pricing and Implementation
While specific pricing is typically negotiated based on company size, volume, and use case, CotoPay’s cost structure is lean because businesses:
Do not incur physical card/batch printing costs.
Reduce reconciliation and admin overhead.
Scale easily without additional licensing.
Implementation usually takes a few days and integrates with existing HRMS or finance systems via APIs, requiring minimal change management for users.
Section 10: Potential Challenges and Considerations
10.1 Adoption and Change Management
Organizations shifting from traditional workflow may need internal training.
10.2 Voucher Expiry & Compliance
Companies must define proper validity and controls to avoid funds getting stuck.
10.3 Regulatory Changes
As fintech evolves, businesses must stay updated with RBI and NPCI guidelines related to e-RUPI and UPI vouchers.
Section 11: Future Roadmap & Trends
In 2026, CotoPay is likely to expand into:
Cross-border voucher support
AI-driven expense analysis and fraud detection
Integration with global ERP and payroll ecosystems
This future orientation aligns CotoPay with the broader global trend of embedded finance and programmable payments.
Conclusion
CotoPay represents a transformative leap in how Indian businesses manage operational and employee expenses. By harnessing the strengths of UPI and e-RUPI vouchers, it provides strong control, seamless usability, real-time analytics, and better compliance — making expense management smarter, transparent, and efficient.
As enterprises continue digitizing their finance operations, tools like CotoPay will increasingly become the standard for controlled digital business spending.
Frequently Asked Questions (FAQs)
1. What exactly is a UPI e-RUPI voucher?
A UPI e-RUPI voucher is a prepaid, purpose-specific digital payment instrument that can be redeemed through any UPI-enabled app and is locked for specific use cases such as meals or fuel.
2. Does CotoPay require end users to download a separate app?
No. Vouchers issued through CotoPay automatically appear in the user’s existing UPI app without additional downloads.
3. Are the funds transferred to employees’ accounts?
No — funds remain blocked in the company account and are only debited when the voucher is used.
4. Can CotoPay be used by small businesses?
Yes. It is designed to support companies of all sizes across multiple sectors.
5. What happens if a voucher is not used?
Unspent vouchers expire, and blocked funds are automatically released back to the company account.
6. Is there merchant acceptance limitation?
No. Vouchers can be redeemed at any merchant’s existing UPI QR codes as long as it matches the voucher’s category or rules.
7. Who are the co-founders of CotoPay?
The co-founders are Aviral Gupta (CEO), Vidit Sidana (CBO), and Uzair Syed Ahmed (CTO).
8. What is Aviral Gupta’s professional background?
Aviral Gupta, Co-Founder and CEO, studied at The Doon School and earned a Master’s in Management from London Business School; he worked on fundraising and UPI at BharatPe.
9. How did Vidit Sidana join the team?
Vidit Sidana, Co-Founder and CBO, graduated from SRCC Delhi University, validated market needs by talking to companies, then quit his job to focus on business operations.
10. What experience does Uzair Syed Ahmed bring?
Uzair Syed Ahmed, Co-Founder and CTO, has 20 years in software development, including core work on Aadhaar and designing the CoWIN vaccination platform during COVID.
11. How did the founders meet and form CotoPay?
Aviral met Vidit at school; Aviral and Uzair collaborated on CoWIN projects; after 1.5 years of development, they launched CotoPay in October 2025 to solve unstructured business payments.
12. What did they pitch on Shark Tank India Season 5?
They sought ₹50 lakhs for 1% equity (₹50 crore valuation), received a counter-offer of ₹75 lakhs for 2% + 1% advisory equity from Anupam Mittal and Kunal Bahl.
