Tata Payments Obtains RBI License for Payment Aggregation
Tata Payments, a digital payments application operating under Tata Digital, has obtained a Payment Aggregator (PA) license from the Reserve Bank of India (RBI). This license empowers the company to conduct ecommerce transactions through its platform. This achievement positions Tata Payments in the same league as prominent players such as Razorpay, Cashfree, and Google Pay, providing the capability to efficiently handle funds across its subsidiary entities.
Anonymously, the founder of a digital payment startup remarked, "The Payment Aggregator license obtained by Tata allows the company to handle all ecommerce transactions within its subsidiary businesses, improving its fund management capabilities". Similarly, Bengaluru-based DigiO, a startup focused on identity verification and backed by investment platform Groww, has also secured the PA license effective from January 1. This license enables DigiO to integrate payment services alongside its digital identification solutions.
Tata Group had launched its digital payments application on the Unified Payments Interface (UPI) in partnership with ICICI Bank in 2022. Despite devising an extensive strategy for financial services, the conglomerate's consumer adoption currently remains limited. This marks Tata's second foray into the payments sector within the group, following its previous acquisition of the license to operate 'white label ATMs' in rural India under Tata Communications, branded as Indicash.
