Jio Payment finally gets RBI nod, to rival Paytm and others in… | Tech News

Jio Payment finally gets RBI nod, to rival Paytm and others in…

Jio Payment Solutions has received RBI approval to operate as an online payment aggregator, positioning itself to compete in India's digital financial services market effectively.

By: HT TECH
| Updated on: Oct 31 2024, 11:18 IST
Reliance Jio launches JioBharat V2 4G priced at just 999; it has internet too! Check out the photos
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1/6 The new JioBharat V2 4G phone has emerged as the new phone for the masses. For less than Rs. 1000 it will even provide internet access. It is the phone with the lowest Net-enabled entry price. (ANI)
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2/6 It will go under beta testing for the first 1 million Jio Bharat phones starting on July 7, ANI reported. (ANI)
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3/6 The new JioBharat V2 4G smartphone comes with affordable internet services with basic recharge plans starting at Rs. 23 for 28 days, offering unlimited voice calls and 14 GB data, an ANI report added. (Jio)
Jio Payment
4/6 Other operators typically offer a basic plan priced at Rs. 179 for 28 days with voice calls and 2GB of data. Jio claims that their basic plan is not only 30% cheaper but also provides 7 times more data compared to feature phone offerings from other operators. (Jio)
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5/6 Additionally, Jio offers annual plans for the feature phone, costing Rs. 1234 for 12 months, which includes unlimited calls and 168 GB of data. (ANI)
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6/6 Some other features of the new JioBharat phone include a 1.77-inch TFT display, 0.3MP camera, 1000mAh battery, SD card support up to 128GB, and 3.5mm headphone jack for audio. (Jio)
Jio Payment
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Jio Payment Solutions gets RBI approval to operate as a digital payment service in India. (Jio)

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.

Strategic Market Position Amid Competitor Challenges

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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RBI's Approval Strengthens Jio's Fintech Ambitions

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 regulatory issues. Paytm Payments Bank, Paytm's financial arm, was recently restricted by the RBI from onboarding new customers due to compliance-related matters. This has limited Paytm's ability to expand, opening opportunities for other providers, including Jio, to cater to unmet demands in digital payments.

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Jio Financial Services, spun off from Reliance Industries, focuses on investment, financing, insurance brokerage, payment banking, and aggregator services. As reported by CNBC TV 18, in August 2024, JFS increased its stake in Jio Payments Bank to 82.17 percent, reinforcing its strategic investment in financial services. The move aims to solidify JFS's position as it continues to develop its suite of services in India's competitive fintech market, with an eye on further expansion and innovation.

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First Published Date: 30 Oct, 14:56 IST
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