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Tag: Prepaid Payment Instrument

  • BlackBuck Subsidiary Gears Up for Digital Payments with RBI’s PPI Nod

    The Reserve Bank of India (RBI) has granted a prepaid payment instruments (PPI) licence to Zinka Logistics, a subsidiary of listed logistics giant BlackBuck.

    The business stated in an exchange statement that its fully owned subsidiary, TZF Logistics Solutions Pvt Ltd, was awarded the licence by the central bank. Banks and non-banks cannot issue PPIs without a licence under the Payment and Settlement Systems Act of 2007.

    To put it in perspective, PPIs enable remittance facilities, conduct financial activities, assist the purchase of goods and services, and more, all of which are facilitated by the value they store.

    The Move will Assist TZF Logistics to Run Payment System More Effectively

    According to BlackBuck’s petition, the licence will assist the company’s fully owned subsidiary TZF Logistics Solutions Pvt Ltd, in setting up and running a payment system for prepaid payment instruments.

    The RHP that BlackBuck submitted in November of last year states that TZF Logistics is in the transportation industry, offering clients a platform to rent various vehicles such as trucks, lorries, containers, cars, fleet taxis, and more. After being established in 2018, TZF Logistics reported a loss of INR 17.5 Lakh in FY24.

    Although BlackBuck didn’t say exactly how it would use the PPI licence, it is probably going to give it to truckers so they can pay for fuel and FASTag.

     BlackBuck, which was founded in 2015 by Rajesh Yabaji, Chanakya Hridaya, and Ramasubramaniam B, began as an online truck aggregator before growing to include a wide variety of load management, telemetry, payment, and vehicle financing products.

    BlackBuck’s Business Operations

    BlackBuck links small and large companies with shipping needs with truck fleet operators. Transparency about fuel costs, charges, truck safety, and tracking is frequently lacking among truck operators.

    BlackBuck provides fuel cards and FASTag payments, GPS tracking and truck theft protection systems, verified communication channels between the shipper and the trucker, and vehicle financing options to address these problems. Commissions, platform fees, and subscriptions are how the business makes money.

    In FY24, it had a 27.52% market share in the domestic goods sector. With a net profit of INR 280.1 Cr in Q4 FY25, the company generated a profit after reporting a loss of INR 90.8 Cr in the same quarter the previous year.

    A tax credit of INR 245 Cr was also included in the profit figure. In the meantime, operating revenue increased from INR 93.2 Cr in Q4 FY24 to INR 121.8 Cr, a 30.6% increase.

  • RBI’s Prepaid Payment Instrument (PPI) Licence Secured by Cashfree Payments

    The Reserve Bank of India (RBI) has granted Cashfree Payments, a prominent player in the payments and API banking industry in India, a Prepaid Payment Instrument (PPI) licence.

    The RBI has granted Cashfree Payments the Payment Aggregator (PA), Payment Aggregator-Cross Border (PA-CB), and Prepaid Payment Instrument (PPI) licenses, making it one of the first fintechs to attain these licenses. With the use of this licence, the firm will be able to offer improved digital payment options via prepaid instruments, making transactions between companies and their clients easier.

    A new avenue for innovation in the payments industry is made possible by the PPI licence. The company’s goal has always been to give Indian businesses and its clients safe, adaptable, and effective payment experiences. According to Cashfree Payments CEO and cofounder Akash Sinha, the PPI license will assist Cashfree Payments in developing products that enable online companies to maintain and expand their customer base.

    Cashfree Payments Expanding its Operations

    In July, the business acquired a cross-border payment aggregator licence, allowing import and export transactions. It happened after the RBI gave it a payment aggregator licence in December 2023, enabling it to function in the online merchant payment market.

     Cashfree Payments, which was founded in 2015 by Sinha and Reeju Datta, collects payments, pays vendors, disburses wages, reimburses expenses in bulk, and offers loyalty benefits to about 600,000 enterprises in India. The company handles transactions totalling approximately $80 billion yearly. Supported by investors including State Bank of India, Y Combinator, and Apis Partners, the business has also introduced products in eight additional nations, including the US, Canada, and the United Arab Emirates.

    The National Payments Corporation of India certified Cashfree Payments earlier this month for its Unified Payments Interface Switch service, which enables it to interface directly with any bank’s core systems to provide its merchants with greater transaction success rates.

    ‘Piramal Pay’ Likewise Also Received RBI’s Nod

    The Reserve Bank of India (RBI) has also granted permission to Piramal Payment Services Limited, a division of Piramal Capital & Housing Finance Ltd, to launch and run its “Piramal Pay” prepaid payment instrument (PPI) service.

    The company emphasised that this authorisation, which was given in accordance with the Payment and Settlement Systems Act of 2007, is a major step towards providing millions of users throughout India with cutting-edge digital financial products. With this latest accreditation, Piramal Payment Services becomes one of the few RBI-approved Payment System Operators all geared up to improve the nation’s digital transaction environment.

    The company further stated that “Piramal Pay” is intended to make financial transactions easy, safe, and convenient for both consumers and companies.

    RBI Predicts UPI Daily Transactions to Hit 1 Billion Soon
    RBI Governor Shaktikanta Das expects daily UPI transactions to reach 1 billion soon, up from 500 million. Extensive testing is planned before any CBDC rollout.
    StartupTalkyNitin Konde