Jio Payment Solutions, a subsidiary of Jio Financial Services (JFS), has secured regulatory clearance from the Reserve Bank of India (RBI) to operate as an online payment aggregator, effective October 28, 2024. This approval allows Jio Payments to facilitate and manage digital transactions for merchants and customers alike. This would be a service similar to what Paytm offers.
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This development is significant, as Jio Payments joins an exclusive group of RBI-approved online payment aggregators. Amid recent regulatory challenges faced by competitors like Paytm, whose financial services division is restricted from onboarding new customers, Jio Payments has a strategic opportunity to seize a larger share of the digital financial services market. With Paytm’s limited expansion, Jio can position itself as a vital player in India’s digital payment landscape.
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As an online payment aggregator, Jio Payments will offer businesses the ability to accept diverse payment methods, including debit and credit cards, UPI, e-wallets, and more. This move builds on Jio Payments Bank’s existing services, such as biometric-access digital savings accounts and physical debit cards, which serve over 1.5 million active users.
With this RBI approval, Jio Payments is well-poised to compete in India’s growing fintech market. The RBI’s green light signals confidence in Jio’s compliance with stringent regulatory standards, strengthening JFS’s ambitions to offer more comprehensive digital banking and payment services across India.
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This RBI authorisation for Jio comes as Paytm, one of India’s major digital payment providers, has been facing significant regulatory hurdles. Recently, Paytm’s financial services division, Paytm Payments Bank, was barred by the RBI from onboarding new customers due to compliance concerns. This restriction has impacted Paytm’s ability to grow its user base and expand services, leaving a gap in the market for digital financial solutions.
