In a significant development, Tata Pay, the digital payments app under Tata Digital, has been granted a payment aggregator (PA) license by the Reserve Bank of India (RBI). This license positions Tata Pay among industry leaders such as Razorpay, Cashfree, and Google Pay, enabling it to efficiently handle ecommerce transactions within its subsidiary entities.
Strategic Advantages of the PA License
- Tata Pay gains the capability to power ecommerce transactions within its ecosystem, enhancing fund management.
- Similar licenses were also obtained by other players like DigiO, a Bengaluru-based identity verification startup supported by Groww, allowing them to integrate payment services with their digital identification solutions.
Tata Group’s Digital Payment Journey
- Tata introduced its digital payments app on the Unified Payments Interface in collaboration with ICICI Bank in 2022.
- This move signifies Tata’s second foray into the payments sector within the group, following the acquisition of a license for ‘white label ATMs’ under Tata Communications.
RBI’s Recent Grant of PA Licenses
- The RBI’s recent approvals, including Tata Pay, allowed new merchant onboarding for Razorpay and Cashfree after nearly a year.
Important Questions Related to Exams
What recent achievement has Tata Pay attained in the digital payments landscape?
- How does the payment aggregator (PA) license from the RBI benefit Tata Pay in managing funds within its subsidiary entities?
- Which other startup, supported by Groww, recently obtained a PA license as of January 1, and what new capabilities does this license provide?
Highlight Tata Group’s previous ventures in the payments sector and their significance.
Please provide your answers in the comment section!!