Tata Payments, a digital payments arm of the Tata Group, and DigiO, an identity verification startup backed by Groww, have recently received a significant nod from the Reserve Bank of India (RBI) in the form of payment aggregator (PA) licenses.
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What Happened? This approval, granted on January 1, places these entities in the league of prominent platforms like Google Pay and Razorpay, marking a pivotal moment in their journey.
For Tata Payments, this license is a game-changer, potentially reducing its reliance on external PA partners who command high service charges for payment collections. This development aligns with the Tata Group’s broader digital strategy, especially since the launch of its UPI-based payments app in partnership with ICICI Bank in 2022.
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The PA license could significantly bolster Tata Digital’s ambitious super app plans, enhancing its financial services outreach and operational efficiency.
Big wins: Meanwhile, DigiO, co-founded by Abhinav Parashar and Sanket Nayak, and known for services like identity verification and electronic signing, can now integrate payment services into its offerings. This move could expand DigiO’s fintech Software as a Service (SaaS) capabilities, offering more comprehensive solutions to its clientele.
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The RBI’s approval of Tata Payments and DigiO comes in the wake of similar approvals granted to other fintech giants, signalling a burgeoning trend in the digital payments sector in India. With these licenses, both Tata Payments and DigiO are set to play significant roles in the evolving landscape of digital financial services.
