Zomato joins the list of payment aggregators like Paytm, Razor Pay, Tata Pay, and Pay Zaap to get an RBI nod to operate as a payment aggregator.
The Reserve Bank of India (RBI) has granted a payment aggregator (PA) license to Zomato Payments Private Limited, the Zomato – Food delivery app subsidiary.
This approval will allow Zomato 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 Limited (“the Company”) to carry out the business, inter alia, as payment aggregator and issuer of pre-paid payment instruments, we wish to inform that ZPPL has been granted certificate of authorization dated January 24, 2024, from the Reserve Bank of India (“RBI”) to operate as an ‘Online Payment Aggregator’ in India with effect from January 24, 2024, as per the guidelines issued by the RBI,” the filing said.
Last year Zomato collaborated with ICICI Bank to launch its unified payment interface (UPI) – Zomato UPI, without any KYC process, However, this was offered to select users. This helped the users to complete their payments without navigating to other payment apps like Google Pay, Paytm, and other apps while placing orders.
Who is a Payment Aggregator (PA): Payment Aggregators (PA) are companies that facilitate online payments by acting as a bridge or intermediary between the customer and merchant by providing various payment options including credit cards, debit cards, bank transfers, and e-wallets ensuring that the transactions are safe and secure.
The following are essential characteristics of a payment aggregator:
Multiple payment options: Credit cards, Debit cards, Bank transfers, and e-wallets.
Safe and Secure: Payment Aggregators use advanced security measures to ensure the transactions are safe and secure.
Fraud Detection and Prevention: Payment Aggregators use Algorithms, AI, and machine learning to detect and prevent fraud by reducing payment disputes.
Shares of Zomato closed at 136.15 on NSE on January 25, 2024, marginally down by 0.04%, it opened at 135.90 and made a day high of 138.20 and day low of 132.80, the 52-week high of the stock is at 141.50 and a 52-week low of the stock is at 44.35.