Zomato Payment: Online food delivery company Zomato has been trying to enter the payments space for years. It also received Online Payment Aggregator License and Prepaid Payment Instrument License from Reserve Bank of India this year.
PA Licence and PPI Licence
Online food delivery company Zomato has been trying to enter the payments space for years. It also received Online Payment Aggregator License and Prepaid Payment Instrument License from Reserve Bank of India this year.
But now the company has refrained from further meddling in this area. Also the licenses given to Zomato have been returned to RBI. Along with this, Zomato Payment has also been locked.
According to Zomato’s regulatory filings, the company had received an investment of approximately Rs 39 crore in its fintech subsidiary Zomato Payment Private Limited (ZPPL). The company has recouped this investment in the March quarter. Along with this, PA license and PPI license have also been returned. The company has said that it does not see much scope to grow its business in the payments space.
Zomato surrenders payment aggregator and wallet license to RBI https://t.co/fAYUm0lHs3
— Entrackr (@entrackr) May 13, 2024
According to Zomato, the payments sector has undergone major changes over the past few years. A lot has changed since the company applied for the license. Now the company does not see much potential in this area. With the passage of time, we no longer see the ability to compete in this field. So instead of starting work in payment sector it is better to stop it. This is the opinion of the company.
These licenses will allow Zomato to process online payments. Apart from this, services like wallets and cash cards can also be launched. The company was trying to reduce its costs by saving money that goes to third party payment services. Last year, the company also launched Zomato UPI service in collaboration with ICICI Bank.
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