Zomato Receives RBI Nod To Operate As An Online Payment Aggregator

Zomato Receives RBI Nod To Operate As An Online Payment Aggregator

SUMMARY

Zomato said its subsidiary Zomato Payments Private Limited has received the certificate of authorisation from the RBI to operate as an online payment aggregator

Zomato Payments was incorporated to carry out the business as payment aggregator and issuer of pre-paid payment instruments

Early last year, Zomato also rolled out an in-house Unified Payments Interface (UPI) service for peer-to-peer (P2P) and merchant transactions

Foodtech major Zomato has received the licence from the Reserve Bank of India (RBI) to operate as an online payment aggregator with effect from January 24, 2024.

In an exchange filing on Thursday (January 25), Zomato said, “…we wish to inform that ZPPL (Zomato Payments Private Limited) has been granted certificate of authorisation dated January 24, 2024, from the Reserve Bank of India (“RBI”) to operate as an ‘Online Payment Aggregator’ in India.”

In 2021, the foodtech major had announced the incorporation of ZPPL, a wholly owned subsidiary, to carry out the business as payment aggregator and issuer of pre-paid payment instruments. 

Zomato Payments was incorporated with an initial subscription of 10,000 equity shares of INR 10 each aggregating to INR 1 Lakh. It was incorporated with an authorised share capital of INR 20 Cr. 

The development will help the company, which has been on a spree of new experiments, expand its offerings. Early last year, Zomato also rolled out an in-house Unified Payments Interface (UPI) service for peer-to-peer (P2P) and merchant transactions. However, reports emerged around July last year that the company had paused onboarding new users on Zomato UPI .

Meanwhile, Zomato has introduced a number of new features and services to shore up its revenue. 

While measures like the introduction of platform fee have helped Zomato increase the collection and take rate for its food delivery business, it is also doubling down on its quick commerce vertical Blinkit. Zomato also forayed into the logistics space  last year and launched a quick parcel delivery service for merchants with a new app called Xtreme.

On the back of this, Zomato achieved profitability in the ongoing financial year and has posted two consecutive quarters of net profit. The company’s shares surged over 100% in 2023.

This year, its shares have gained 9.9% so far and closed the last trading session at INR 136 on the BSE.

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