Zomato gets RBI’s approval for online payment aggregator ops

Zomato Payments, a subsidiary of Zomato Limited, has been given the go ahead by the Reserve Bank of India (RBI) to operate as an online payment aggregator

as per a filing with the stock exchange.

This authorisation, effective from January 24, 2024, allows Zomato to enhance its financial services offerings and facilitate seamless transactions within its platform.

The establishment of Zomato Payments in August 2021 paved the way for this authorisation. Zomato’s previous collaboration with ICICI Bank to introduce its Unified Payments Interface (UPI) feature, Zomato UPI, aimed to simplify the payment process for users, eliminating the need for multiple payment apps.

Emphasising the safety of its UPI offering through features like a security PIN, Zomato seeks to improve user experience and capture a larger share of India's digital payments market, leveraging its extensive customer base and frequent use of UPI for food orders.

Zomato now joins other notable entities such as Tata Pay, Razorpay, and Cashfree, which have also obtained similar licenses from the RBI. The RBI’s approval in 2023 for at least six payment aggregator licenses, including those for RazorPay and Cashfree Payments, signifies a growing emphasis on digital payments and the expanding role of various companies in India’s digital payment ecosystem.