Jio Payment Solutions, a part of Jio Financial Services (JFS), has been given the green light from the Reserve Bank of India to act as an online payment aggregator from October 28, 2024. It means Jio can now provide services that allow businesses and consumers to process digital payments easily.
Majorly, Jio Payments will ease merchant and customer transactions, similar to Paytm. The move will enhance Jio's position in the digital payment landscape, allowing it to compete more effectively in the growing online payment market in India.
Jio Payments is now one of the few RBI-approved online payment aggregators. With competitors like Paytm facing regulatory issues and unable to onboard new customers, Jio has a chance to capture a larger share of the digital financial services market in India. This puts Jio in a strong position in the digital payments landscape.
As an online payment aggregator, Jio Payments provides businesses with the ability to accept different payment methods, including debit-credit cards, UPI, e-wallets, and more. This move enhances Jio Payments Bank's current services, including biometric digital savings accounts and physical debit cards, which have over 1.5 million active users.
With this RBI approval, Jio Payments is set to compete in India’s expanding fintech market. The RBI’s approval shows confidence in Jio’s loyalty to strict regulations, boosting JFS’s goals to provide more extensive digital banking and payment services nationwide.
The RBI's approval for Jio comes at a time when Paytm, a major digital payment provider in India, is facing serious regulatory challenges. Paytm Payments Bank has been stopped by the RBI from onboarding new customers due to compliance issues. This restriction has obstructed Paytm's growth and service expansion, creating a gap in the market for digital financial solutions.
What is a payment aggregator?
A payment aggregator is a third-party service that permits businesses to handle online payments. Acting as a bridge between businesses and financial institutions, it simplifies the payment process, offering a more productive alternative to traditional payment methods.