Starting from January 24, 2024, Zomato Payment Pvt Ltd (ZPPL) has obtained authorization to function as both a payment aggregator and an issuer of prepaid payment instruments (RBI has approved Zomato Payments).
Zomato Payment Pvt Ltd (ZPPL), a wholly-owned subsidiary of Zomato Limited, has recently received regulatory approval from the Reserve Bank of India (RBI) to function as an online payment aggregator.
This significant development was officially disclosed in a filing to the Bombay Stock Exchange (BSE) on a Friday. Commencing from January 24, 2024, ZPPL is granted official authorization to operate not only as a payment aggregator but also as an issuer of prepaid payment instruments (RBI has approved Zomato Payments).
The filing communicated the positive news, stating, “We are pleased to announce that ZPPL has been granted a certificate of authorization dated January 24, 2024, by the Reserve Bank of India (“RBI”) to function as an ‘Online Payment Aggregator’ in India, effective January 24, 2024, as per the guidelines issued by the RBI.”
The genesis of ZPPL can be traced back to August 2021 when the food delivery giant initiated its wholly-owned subsidiary. This initiation involved an initial subscription of 10,000 equity shares at a nominal value of Rs 10 each, aggregating to a sum of Rs 1,00,000.
The filing revealed that ZPPL, right from its inception, had set its sights on obtaining the necessary regulatory approval to function as a payment aggregator (RBI has approved Zomato Payments).
Payment aggregators play a crucial role in modern financial ecosystems, streamlining and facilitating transactions for both merchants and e-commerce platforms. They serve as intermediaries between customers and merchants, ensuring a seamless payment experience by accepting a variety of payment instruments, such as credit cards, UPI, wallet payments, and more.
The RBI’s authorization of ZPPL to operate as a payment aggregator and issuer of prepaid payment instruments underscores Zomato’s strategic expansion into the financial services sector, enabling the company to play a more comprehensive role in the payment landscape.
In a noteworthy move from the preceding year, Zomato diversified its offerings by launching a UPI service in collaboration with ICICI Bank. This UPI service empowered users to make payments to both merchants and peers, adding a layer of versatility to Zomato’s financial services portfolio.
As of the latest trading update, Zomato shares were reported to be trading at Rs 136 on the BSE index at 3:30 pm, reflecting the company’s ongoing presence and influence in the market.
This series of strategic moves and expansions positions Zomato as a multifaceted player, not only in the food delivery space but also in the broader landscape of digital payments and financial services.
