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Zomato surrenders payment aggregator and wallet license to RBI

EntrackrEntrackr · 1y ago
Zomato surrenders payment aggregator and wallet license to RBI
Medial

Foodtech major Zomato has decided to voluntarily surrender the payment aggregator and wallet license to the Reserve Bank of India (RBI). In a filing, the company disclosed that its subsidiary Zomato Payments Private Limited (ZPPL) has decided to voluntarily surrender the certificate of authorisation obtained from the RBI to operate as an online payment aggregator under the Payment and Settlements Systems Act 2007. To recall, Zomato had incorporated a wholly-owned subsidiary (ZPPL) in August 2021 to comply with RBI regulations for payment aggregator services and payment gateway services. The firm received the RBI’s nod to carry out business as payment aggregator and issuer of pre-paid payment instruments in January this year. Zomato also wrote down its investment of Rs 39 crore in ZPPL, and declared it as an impairment loss. In May last year, Zomato collaborated with ICICI Bank to introduce its own unified payments interface (UPI) solution—Zomato UPI. The feature was aimed to minimize the use of third party payment apps like Google Pay, Paytm, and PhonePe for payments. On Monday, Zomato filed its financial report for the last quarter of FY24 or Q4 FY24. The firm reported Rs 175 crore profit after tax with a revenue of Rs 3562 crore. Overall, the company registered a 71% surge in its revenue to Rs 12,114 crore in FY24 from Rs 7,079 in FY23. The Deepinder Goyal-led company also announced fresh employee stock option (ESOP) options for its employees under the new plan. As per Fintrackr estimates, the value of fresh ESOP stood at around $450 million.

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IRCTC looks to expand fintech footprint with new payment aggregator subsidiary

EntrackrEntrackr · 1y ago
IRCTC looks to expand fintech footprint with new payment aggregator subsidiary
Medial

The Indian Railway Catering and Tourism Corporation (IRCTC) has incorporated a new subsidiary which focuses on payment aggregator business, according to the company’s disclosure with the stock exchange. The disclosure comes months after the company initiated the process to acquire a payment aggregator license with the Reserve Bank of India (RBI). IRCTC had then also launched an in-house payment gateway, called iPay. The gateway brings an additional layer to the payment process allowing users to book tickets through autopay, debit card, credit card, and net banking, among others. “On the iPay platform, [the] number of payment transactions handled during this quarter is 1.54 crores. It has increased by 12.94% over the previous quarter and by 36% increase over the previous year. Payment aggregator license is in the process of getting this license from RBI, and as recommended by RBI, we are in the process of forming a subsidiary for this iPay license,” IRCTC managing director and chairman Seema Kumar had said in August 2023 during an earnings call. The payment aggregator business is likely to allow the railway ticketing platform to further expand its fintech capabilities with deeper synergy with partner merchants, and most likely diversify services and products on its platform. In case you did not know, the RBI had introduced a new licensing regime for payment gateways in 2020. The move was aimed at better compliance and regulations in the fintech industry. “PAs are entities that facilitate e-commerce sites and merchants to accept various payment instruments from the customers for completion of their payment obligations without the need for merchants to create a separate payment integration system of their own. PAs facilitate merchants to connect with acquirers. In the process, they receive payments from customers, pool and transfer them on to the merchants after a time period,” the RBI explained in its original notification. Since then, quite a few companies have received the PA license. This includes fintech firms like Razorpay, Cashfree, and Decentro.

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