Shriram Finance, an Indian non-banking finance company (NBFC), has revealed plans to foray into payments sector by offering mobile wallets, prepaid cards, and FASTag services, subject to regulatory consent.
“Approved the proposal to offer payment services through Mobile Wallets, Prepaid Cards (Food Card, Gift Card), FASTag, etc. providing a secure, convenient and efficient alternative to cash transactions for our customers,” the company confirmed in an exchange filing.
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The move is contingent on the approval from the Reserve Bank of India (RBI) as per the Master Directions on Prepaid Payment Instruments (PPI).
The lender’s entry into the payment services market requires authorisation as a Payment System Operator in accordance with the Payments and Settlement Systems Act, 2007 (PSSA), along with necessary approvals from other statutory bodies.
Shriram Finance, part of the Shriram Group, has a diversified presence in sectors including consumer finance, insurance, housing finance, stockbroking and distribution business.
Earlier this month, PB Pay, a subsidiary of PB Fintech, secured in-principle authorisation from the Reserve Bank of India (RBI) to function as an online payment aggregator.
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By GlobalDataIndian fintech Resilient Payments, a subsidiary of the BharatPe Group, also recently obtained an online payment aggregator licence from the Indian apex bank.
The company is preparing to introduce its services under the brand ‘BharatPe X’, and looks to enhance its foothold in tier two as well as three cities.
