Jio Payment finally gets RBI nod, to rival Paytm and others in…
Jio Payment Solutions, part of Jio Financial Services (JFS), has received regulatory approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator, beginning October 28, 2024. This authorization allows Jio Payments to manage digital transactions between merchants and consumers, positioning it as a competitor in the payment services sector, similar to platforms like Paytm.
With this approval, Jio Payments becomes part of a select group of RBI-certified online payment aggregators, which marks a significant step in India's digital payments industry. The timing is notable, as Paytm, a major digital payments provider, has recently encountered regulatory restrictions that limit its ability to onboard new users. These constraints create an opening for Jio Payments to potentially expand its influence and reach in the digital financial space, possibly capturing a larger segment of the market.
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The role of an online payment aggregator enables Jio Payments to offer businesses and merchants the tools to accept multiple payment types, such as debit and credit cards, Unified Payments Interface (UPI) transactions, e-wallets, and others. Jio's move into this area complements its existing services through Jio Payments Bank, which provides digital savings accounts with biometric access, as well as physical debit cards, serving an existing user base of over 1.5 million active customers.
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The RBI's decision underscores the bank's confidence in Jio's compliance with regulatory standards, setting the stage for Jio to play a more prominent role in India's rapidly evolving fintech ecosystem. JFS has made it clear that its ambitions include enhancing its digital banking and payments portfolio, and this approval aligns with those goals.
This development for Jio Payments arrives as Paytm faces ongoing
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