Zomato gets RBI approval to operate as an Online Payment Aggregator

Zomato Payment Pvt Ltd (ZPPL), a wholly-owned subsidiary of Zomato Limited, has got RBI approval to operate as an online payment aggregator, the firm announced in a BSE filing on Thursday.

“We are pleased to announce 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,” the filing read.

Notably, the food delivery platform established ZPPL in August 2021 with an initial offering of 10,000 equity shares of Rs.10 each, totalling Rs. 1,000,000.

Zomato had indicated that ZPPL had been created as a wholly-owned subsidiary with the goal of seeking for payment aggregator approval. Last year, the company also launched a UPI service in collaboration with ICICI Bank, which allows customers to make both merchant and peer-to-peer payments.

Payment aggregators are third-party service providers who let merchants collect payments from customers by integrating them into their websites or apps. In other words, payment aggregators act as intermediaries between merchants and acquirers.

Zomato’s shares were trading in the red at Rs.136.00 when the market closed. The company’s market capitalization is currently Rs.1,18,468 crore, according to the BSE website.