Zomato receives RBI clearance to function as an aggregator of payments
With this, Zomato gains the much expected payments license, joining firms like Tata Pay, Razorpay, and Cashfree.
Zomato may now function as an aggregator of payments
The meal delivery platform Zomato's subsidiary Zomato Payments Pvt Ltd has received a payment aggregator (PA) license from the Reserve Bank of India (RBI). With this permission, the company's platform will be allowed to handle e-commerce transactions.
According to our previous announcement from August 4, 2021, on the establishment of Zomato Payments Pvt. Ltd. (ZPPL), a fully owned subsidiary of Zomato Pvt. that functions as a pre-issuer and payment aggregator among other things. Does Business as. Payment Devices, We would like to notify you that, on January 24, 2024, ZPPL received a Certificate of Authorization from RBI to function as a Payment Aggregator in India," the foodtech company said in an exchange filing.
With this, Zomato gains the much expected payments license, joining firms like Tata Pay, Razorpay, and Cashfree.
Without needing businesses to build their own payment interface, payment aggregators enable e-commerce websites, mobile applications, and merchants to accept payment instruments from consumers for their transactions.
According to the regulation, in order for payment gateways to provide digital payment acceptance solutions, they must get an aggregator license.
The meal delivery service and ICICI Bank collaborated to introduce Zomato Pay, a new Unified Payment Interface (UPI) service, last year.
Reducing reliance on third-party payment applications like as Google Pay, PhonePe, and Paytm to enable transactions was the reasoning for this. As a result, Zomato was able to reduce the merchant costs associated with payments received via third-party applications.
Customers of FoodTech may benefit from Zomato Pay in addition to making payments for online grocery and meal orders on Zomato and Blinkit.Additionally, Dhyam provides the ability to pay for meals at certain Zomato-listed restaurants using a variety of methods, including cards, net banking, and UPI.
Zomato and RBL Bank have previously partnered to provide co-branded credit cards. But the collaboration came to an end in May of last year.
