RBI Approves Zomato Payments as Online Aggregator

Zomato, the leading online food delivery platform in India, has received the Reserve Bank of India’s (RBI) approval to operate as an online payment aggregator through its subsidiary Zomato Payments Private Limited (ZPPL). This will enable Zomato to offer integrated payment solutions to its customers and merchants, and compete with other payment aggregators like Tata Pay, Razorpay and Cashfree.

According to a stock exchange filing by Zomato on January 25, 2024, ZPPL has been granted a certificate of authorisation from the RBI to operate as an online payment aggregator and issuer of pre-paid payment instruments, effective from January 24, 2024 . This is in line with the RBI’s guidelines issued in March 2020, which mandated that all entities providing payment aggregation services should obtain a licence from the central bank by June 30, 2021.

Zomato had earlier partnered with ICICI Bank to launch its own unified payment interface (UPI) service called Zomato UPI, which allowed users to make payments without the need for additional apps. Zomato had also collaborated with RBL Bank to offer credit cards to its users, but later discontinued the service. With the RBI’s approval, Zomato can now leverage its subsidiary ZPPL to facilitate e-commerce transactions on its platform and offer a seamless user experience.

Zomato’s entry into the online payment aggregator space is expected to boost its financial services arm and increase its revenue streams. The company, which went public in July 2021, reported a net loss of Rs 356 crore for the quarter ended September 30, 2021, on a revenue of Rs 1,339 crore. Zomato’s stock closed at Rs 136 on January 25, 2024, down by 0.18 per cent from the previous day.