Bengaluru-based neobanking startup Jupiter has secured a prepaid payments instrument (PPI) licence from the Reserve Bank of India (RBI). Th approval is learned to be revolutionizing how it interacts with users. It can now enable offering digital wallets for Unified Payments Interface (UPI) transactions, fund transfers and bill payments.
Junpiter founder Jitendra Gupta made the announcement and expressed excitement about the new possibilities that can be unlocked with the licence. He highlighted that the new prepaid account functionality will offer users several services which are provided by traditional bank accounts. He said that the PPI functionality is almost similar to a bank account and is equipped with all the required facilities to operate the account for UPI payments. It means that the company can now cater to a broader audience and allow them to handle daily transactions with ease and security.
The PPI licence is a game-changer and Jupiter can now provide customers a risk-free account that is specifically made for UPI and similar transactions. The new capability aligns with the guidelines of RBI for PPI accounts.
Gupta further said that the licence will enable them to explore as well as develop new use cases for its app. It will simultaneously enhance user experience and expand range of financial services. The move is part of the company’s broader strategy to innovate and adapt to the evolving financial needs of users.
Jupiter is backed by prominent investors like Tiger Global and Peak XV Partners. It has raised $165 million across several funding rounds. Its valuation was $654 million in June 2023. However, it is not alone in the space. Bengaluru-based fintech Slice is also in the PPI ecosystem and it too is backed by Tiger Global. It received PPI licence last September.
