Zomato surrendered its PA license to RBI. This service was discontinued

PA License and PPI License: For many years, the massive online meal delivery company attempted to break into the payment market. This year, it also received licenses from the Reserve Bank of India (RBI) for prepaid payment instruments (PPI license) and online payment aggregators (PA license). However, the business has now given up on trying to compete in this market. Zomato has also surrendered the licenses it got to the RBI. Zomato Payment has been locked as a result.

Return of the PPI and PA licenses

Zomato Payment Private Limited (ZPPL), the company’s fintech subsidiary, has secured an investment of approximately Rs 39 crore, as per the information obtained from Zomato’s regulatory filing. It was also refunded by the business in the March quarter. The PPI and PA licenses have also been returned in addition to this. According to the company, there aren’t many opportunities for business expansion in the payment industry.

The business no longer sees any opportunities in this industry.

Zomato claims that significant developments have occurred in the payment industry in recent years. Since they submitted their licensing application, a lot has changed. The business no longer believes that this industry has much promise. We no longer possess the skills necessary to compete in this industry as time goes on. As a result, it is preferable to close the payment industry than to begin employment there.

Zomato would have received authorization to handle payments online.

These licenses would have given Zomato authorization to handle online payments. In addition, it might launch services like cash card and wallet. The business was attempting to cut expenses by not using outside payment processors. Along with ICICI Bank, the company launched the Zomato UPI service last year.