Tata Payments, a Tata group's digital payments app, has received payment aggregator (PA) licence from the Reserve Bank of India (RBI). With this Tata Pay will compete with likes of Walmart-backed PhonePe and Google Pay in order to capture a pie of the aggressively growing payments market.
Besides Tata Pay, Bengaluru-based identity verification startup DigiO has also secured the PA licence, as of January 1, from RBI. Backed by investment platform Groww, DigiO collects recurring payments via-e-NACH and is focused on bringing paperless, hassle-free documentation and digital processes to Indian businesses and consumers.
Tata Payments is held through Tata Digital, a Tata Group's subsidiary entity, which houses its digital businesses.
Tata Group launched its digital payments application on the Unified Payments Interface in partnership with ICICI Bank in 2022.
Notably, Tata Pay is the second payment business of the Tata Group. The Group also has a license to operate 'White Label ATM' in rural areas with business name and of – Indicash, through which cash is provided in remote areas. According to RBI data, Tata Group has also tried it hands in prepaid payment business (mobile wallet) earlier, but the company surrendered this license in 2018 due to lukewarm response.
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