RBI authorises Zomato Payments to operate as online payment aggregator: Five things you need to know
Online food delivery firm Zomato says its subsidiary Zomato Payments has received authorisation from the RBI to operate as an online payment aggregator.
Food delivery platform Zomato on Thursday said the Reserve Bank of India (RBI) has granted a payment aggregator (PA) licence to its subsidiary Zomato Payments Private Limited. The approval will allow the firm to facilitate e-commerce transactions through its platform.
"Pursuant to our earlier disclosure dated August 4, 2021, regarding the incorporation of Zomato Payments Private Limited (ZPPL), a wholly-owned subsidiary of Zomato Private to carry out the business, inter alia, as a payment aggregator and issuer of pre-paid instruments, we wish to inform that ZPPL has been granted the certificate of authorisation dated January 24, 2024, from the RBI to operate as a payment aggregator in India," Zomato said in a regulatory filing.
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Here are five key things you need to know:
- Zomato in August 2021 disclosed the incorporation of a wholly-owned subsidiary, Zomato Payments Private Limited (ZPPL), to carry out the business as a payment aggregator and issuer of pre-paid payment instruments.
- After the Reserve Bank of India approval, Zomato Payments can facilitate e-commerce transactions through its platform
- After the authorisation, Zomato joins the league of Tata Pay and Razorpay, among others to get the much-awaited licence to operate as an online payment aggregator.
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4. Last year, the food aggregator tied up with ICICI Bank to launch its own Unified Payments Interface (UPI) offering--Zomato Pay.
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5. The move aimed to reduce dependency on third-party payment apps like Google Pay, PhonePe and Paytm for facilitating transactions and save on merchant charges that come with payments made by other apps.
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Business NewsIndustryBankingRBI authorises Zomato Payments to operate as online payment aggregator: Five things you need to know
First Published:25 Jan 2024, 04:49 PM IST
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