Zomato Gets RBI Approval To Work As Online Payment Aggregator

On Thursday, the food delivery company Zomato said that the Reserve Bank of India has approved the application of its subsidiary Zomato Payments Pvt Ltd (ZPPL) to operate as an online payment aggregator. On August 4, 2021, the company announced the formation of ZPPL, a wholly-owned subsidiary, tasked with functioning as a payment aggregator and issuing pre-paid payment instruments. The authorisation became operational on January 24.

"We wish to inform you that ZPPL has been granted the certificate of authorisation 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," Zomato said in a regulatory filing.

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With this, Zomato Payments has expanded its role beyond food delivery and restaurant discovery into digital payments. Apart from this recent development, Zomato partnered with ICICI Bank last year to introduce its own unified payments interface (UPI), Zomato UPI. Earlier this month, Zomato introduced a new feature called "daily payouts" to support emerging restaurant partners. Currently, the feature will be available for restaurant partners who receive 100 or fewer orders a month, according to the company.

"Our discussions with various restaurant partners highlighted the financial challenges smaller eateries face, using the traditional weekly payout system. This feature is designed to address this critical need for more frequent access to earnings," Zomato said in a blog post.

An online payment aggregator in India is a platform or service that facilitates electronic transactions between merchants and customers by consolidating multiple payment methods into a single interface.

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These aggregators enable businesses to accept various forms of online payments, such as credit/debit cards, net banking, digital wallets, and UPI, providing a seamless and convenient experience for both merchants and customers. Popular examples of online payment aggregators in India include Paytm, Razorpay, and Instamojo.

(With agency inputs)