RBI mandates Zomato Payments to act as an online payment aggregator: Five things you need to know

Food delivery platform Zomato on Thursday said that the Reserve Bank of India (RBI) has granted a payment aggregator (PA) license to its subsidiary Zomato Payments Private Limited. The approval will enable the company to facilitate e-commerce transactions through its platform.

β€œIn line with our earlier disclosure dated August 4, 2021, regarding the incorporation of Zomato Payments Private Limited (ZPPL), a wholly owned subsidiary of Zomato Private, to engage in business, among others, as a payment aggregator and prepaid instrument issuer, we wish to inform that ZPPL has received a certificate of authorization from the RBI dated January 24, 2024 to operate as a payment aggregator in India,” Zomato said in a regulatory filing.

Here are five key things you need to know:

  1. In August 2021, Zomato announced the establishment of a wholly owned subsidiary, Zomato Payments Private Limited (ZPPL), to operate as a payments aggregator and issuer of prepaid payment instruments.
  2. Once approved by the Reserve Bank of India, Zomato Payments can facilitate e-commerce transactions through its platform
  3. After authorization, Zomato joins the league of Tata Pay and Razorpay, among others. in order to obtain the long-awaited license to operate as an online payment aggregator.

4. Last year, the food aggregator partnered with ICICI Bank to launch its own Unified Payments Interface (UPI) offering – Zomato Pay.

5. This move was aimed at reducing the dependence on third-party payment apps such as Google Pay, PhonePe and Paytm to facilitate transactions and save on merchant fees associated with payments made through other apps.

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