RBI okays Zomato payments to operate as payment aggregator; Here's what you need to know

RBI has approved Zomato Payments, a subsidiary of Swiggy rival Zomato, to operate as an online payment aggregator.

The approval is effective from January 24, 2024, which will allow Zomato to facilitate e-commerce transactions through its platform.

The move would help Zomato to reduce reliance on third-party payment apps like Google Pay, PhonePe and Paytm and save on merchant charges.

Last year, Zomato partnered with ICICI Bank and launched Zomato UPI to provide seamless payment experience to its customers.

With the RBI's approval, Zomato joins the ranks of Tata Pay, Razorpay, and Cashfree, who have also secured payment aggregator licenses.