The certificate of authorization, effective from October 28, 2024, permits JPSL to manage digital transactions in compliance with Section 7 of the Payment and Settlement Systems Act, 2007.
Jio Finance shares saw a spike in share price trading at Rs 321.45 apiece, up 1.45 per cent on Tuesday.
With Paytm still feeling the aftershocks of regulatory action by the RBI, where it had barred the fintech’s arm to onboard new customers, Jio has chance to capture a share of the digital financial services market.
Jio Payments Bank, part of Jio Financial Services (JFS), currently provides digital savings accounts with biometric authentication and a physical debit card, boasting over 1.5 million active users who rely on the service for routine expenses.
Expanding its financial services reach, JFS aims to offer full-scale banking, using Jio Payments Bank’s platform for savings accounts.In FY24, Jio Financial Services achieved operational revenue of Rs 1,853 crore and a net profit of Rs 1,604 crore. With licenses spanning lending, insurance broking, and payment aggregation, Jio processed approximately 1.8 million UPI payments in April 2024 alone, underlining its ambition to be a leading digital finance entity.Notably, as of March 2024, cash still accounted for about 60 per cent of consumer spending in India, though this figure has been decreasing since COVID-19, according to an RBI study. Digital payments, particularly through the Unified Payments Interface (UPI), rose from 14-19 per cent in 2021 to 40-48 per cent by 2024.
The study’s Cash Usage Indicator (CUI) also revealed a decline in cash use, especially for high-value purchases. UPI’s role in merchant transactions has surged, accounting for 69% of value and 87% of volume in 2023-24.