A neobanking startup Jupiter, backed by Tiger Global and Peak XV Partners, secured a prepaid payments instrument license from the Reserve Bank of India (RBI). This exciting development allows Jupiter, based in Bengaluru, to offer digital wallets to its users. With these wallets, users can make UPI payments, transfer funds, and pay bills conveniently.
Jupiter’s founder, Jitendra Gupta, confirmed the RBI approval and revealed plans to introduce a prepaid account facility in the coming months.
“PPI functionality today is almost equal to a bank account and has all the required facilities for a user to operate the account for UPI payments and gift cards,” said Gupta. “We can now onboard a wider range of users into our ecosystem who can use the wallet for their small value daily transactions.”
With the RBI’s prepaid payments instrument (PPI) license, Jupiter plans to expand its app’s functionalities. The app offers digital savings accounts, UPI payments, and financial management tools. However, the PPI license opens doors for exciting new features.
The RBI allows PPI accounts with full KYC (Know Your Customer) verification to function similarly to a bank account. This includes enabling UPI payments.
As explained by Jupiter’s founder, Jitendra Gupta, customers can use the app for UPI and similar transactions while maintaining a risk-free account.
Jupiter has secured $165 million through multiple funding rounds and was valued at a cool $654 million as of June 2023, according to Tracxn data.
This new license positions them alongside their Bengaluru-based peer, Slice, backed by Tiger Global, who obtained a PPI license last September.
For Jupiter’s founder, Jitendra Gupta, this is another major step. Last year, Amica Financial Technologies, the company behind Jupiter, received a non-banking finance company (NBFC) license from the RBI. This lending business will operate under a separate entity called Amica Finance, clarified Gupta.
