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.

According to a statement from the Bengaluru-based company, users can begin using Magic Spends by choosing an amount (at least Rs 10) to invest with each transaction.

Young buyers increasingly opt for online shopping on e-commerce sites, food delivery apps, and quick commerce platforms. Jupiter Money’s latest feature enables them to invest a set sum whenever they transact via the company’s mobile app. These investments are directed towards digital gold and mutual funds.

Additionally, users can establish a monthly investment goal by setting a maximum limit and can pause, cancel, or redeem their Magic Spends investments anytime they wish.

Magic Spends operates seamlessly with UPI (United Payments Interface) and debit cards connected to users’ Federal Bank accounts within the Jupiter app.

“Jupiter has always been committed to improving the financial wellness of our customers through innovative features that create healthy habits. Magic Spends takes this mission a step forward,” said Jitendra Gupta, founder of Jupiter Money.

Gupta, formerly the managing director at PayU India, founded Jupiter in 2019. He secured $165 million in equity funding from investors like Tiger Global and Peak XV Partners.

The company enables users to open savings accounts with Federal Bank and facilitates UPI-based payments through its app.

According to data from the National Payments Corporation of India (NPCI), approximately 6 million transactions were initiated via the Jupiter app in April 2024. Additionally, in May of the previous year, the company obtained a license for non-banking financing.