Jio Payment Solutions, a subsidiary of Jio Financial Services (JFS), has received regulatory approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator with effect from October 28, 2024. This approval allows Jio to facilitate and manage payments. Digital transactions for both merchants and customers. This will be similar to the service offered by Paytm.

This development is significant, as Jio Payments has joined an exclusive group of RBI-approved online payment aggregators. Amid recent regulatory challenges faced by competitors like Paytm, whose financial services division is restricted from onboarding new customers, Jio Payments has a strategic opportunity to capture a larger share of the digital financial services market. With Paytm’s limited expansion, Jio can establish itself as a significant player in India’s digital payments landscape.

As an online payment aggregator, Jio Payments will provide businesses the ability to accept various payment methods including debit and credit cards, UPI, e-wallets and more. The move builds on Jio Payments Bank’s existing services, such as biometric-access digital savings accounts and physical debit cards, which serve over 1.5 million active users.

With this approval from RBI, Jio Payments is ready to compete in India’s growing fintech market. The RBI green light signals confidence in Jio’s compliance with stringent regulatory standards, strengthening JFS’s ambitions to provide more comprehensive digital banking and payments services across India.

This RBI authorization for Jio comes when Paytm, one of India’s leading digital payments providers, faces significant regulatory hurdles. Recently, Paytm’s financial services division, Paytm Payments Bank, was barred by the RBI from adding new customers due to compliance concerns. This restriction has affected Paytm’s ability to grow its user base and expand services, creating a gap in the market for digital financial solutions.