Jupiter, a neo-banking start-up backed by Tiger Global and Peak XV Partners, has secured a prepaid payment license from the RBI. Now, users making UPI payments and transferring funds can be offered digital wallets by Jupiter.
A Prepaid Payment Instrument (PPI) license is a regulatory approval issued by the Reserve Bank of India (RBI) to entities providing prepaid payment services. With the RBI’s approval, the prepaid account facility will reportedly be introduced in the coming months.
In a statement, Jitendra Gupta, Founder and CEO, Jupiter, said, “PPI functionality today is almost equal to a bank account and has all the required facilities for a user to operate the account for most types of payments, i.e., UPI payments and gift cards.”
Advertisement
He further added, “Through PPI, we intend to significantly increase our user base, wherein users want to use accounts only for UPI and similar transaction purposes and operate a safe and risk-free account.”
However, Jupiter received in-principle approval from the RBI last year. Speaking about the approval, Gupta said, “While we received in-principle approval from the RBI last year, it is important for Jupiter to be fully compliant with all regulatory requirements. The final authorization was received today.”
Founded in 2019, Jupiter Money is a digital banking startup that provides a range of financial services via its website and mobile app, including credit cards, expense management, UPI payments, savings accounts, investments, loan services, and mutual funds. Some of the investors that back the start-up include Tiger Global, Peak XV, and Matrix Partners.
Advertisement
Through multiple equity founding rounds, $165 million has been raised by Jupiter as of now. As of June 2023, the fintech start-up was valued at $654 million, according to data platform Tracxn.
Earlier this year, Amica Financial Technologies received a non-banking finance company license from the central bank. Amica Financial Technologies operates the fintech start-up Jupiter.
