Jio Payment Solutions can now operate as an online payment aggregator in India
Now, the company can allow merchants and businesses to receive payments.
Jio Payment Solutions, Jio's financial arm, has just gotten approval to operate as an online payment aggregator in India. This means that Jio Payment services can now facilitate online payments through debit and credit cards, UPI, e-wallets, and more.
With this, the company can easily tap into India’s online transaction market, which Statista projects to reach $254.60 billion in revenue in 2024. This also paves the way for new services and ways for merchants to collect payments for customers, going beyond its limited financial offerings like biometric-access digital savings accounts and physical debit cards.
The company announced that it got approval from the Reserve Bank of India (RBI) to start operating as an online payment aggregator in a release yesterday, stating the approval was made effective from October 28th.
Louis Eriakha
This is a significant step for the company, positioning it to compete with major players in India’s digital payment space, such as Paytm, which boasts over 300 million users.
With Paytm dealing with legal battles and recently finally regaining the ability to onboard new users, Jio Financial Services could seize this opportunity to gain an edge and potentially dominate the digital financial market, just as it has in other sectors across the country.
In the mobile industry for example, according to Telecom, Jio has a 40% share of the mobile market in India, leading the pack, with Airtel trailing at 33.07%. With the recent release of the JioBharat v3 and V4 to target budget-conscious consumers in India, this gap might increase, but only time will tell.
With the RBI’s approval, Jio Payment Solutions could take off similarly, possibly skyrocketing beyond its current reported 1.5 million active users.
Louis Eriakha
