Tata Pay Secures RBI Payment Aggregator License for E-commerce Transactions

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

  1. What recent achievement has Tata Pay attained in the digital payments landscape?

  2. How does the payment aggregator (PA) license from the RBI benefit Tata Pay in managing funds within its subsidiary entities?
  3. Which other startup, supported by Groww, recently obtained a PA license as of January 1, and what new capabilities does this license provide?
  4. Highlight Tata Group’s previous ventures in the payments sector and their significance.

Please provide your answers in the comment section!!

 

 

 

Piyush Shukla

Recent Posts

Who was the First President of India? Know the Name

India became a free and independent country in 1947, and later in 1950, it became…

21 mins ago

Rongali Bihu: Assam’s Celebration of New Beginnings and Agricultural Prosperity

Rongali Bihu, also known as Bohag Bihu, is being celebrated across Assam in mid-April 2025,…

41 mins ago

Who was the First Home Minister of India? Know About Him

After India got independence in 1947, the country needed strong leaders to help build a…

53 mins ago

YuvaSpark Founder Akarsh Shroff Conferred with National Youth Award for Transforming Early Education in India

Akarsh Shroff, the founder of YuvaSpark, was conferred the National Youth Award on April 3,…

59 mins ago

Veteran Actor Ravikumar Passes Away at 71

Veteran actor Ravikumar, widely known for his romantic roles in Malayalam and Tamil films during…

1 hour ago

Who was the First Prime Minister of India?

India got its freedom from British rule on 15th August 1947. After independence, the country…

1 hour ago