Jupiter Secures RBI's Prepaid Payments Instrument Licence, Set to Revolutionize Digital Wallet Services

Bengaluru, June 12, 2024 — In a significant development for the neobanking sector, Tiger Global and Peak XV Partners-backed startup Jupiter has obtained a prepaid payments instrument (PPI) licence from the Reserve Bank of India (RBI). This crucial milestone will enable the Bengaluru-based startup to offer digital wallets, facilitating UPI payments, fund transfers, and bill payments to its users.

Jupiter founder Jitendra Gupta confirmed the RBI approval and announced plans to roll out 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,” Gupta explained. “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 PPI licence, Jupiter aims to expand its app's capabilities, which currently include digital savings accounts, UPI payments, and financial management tools. The central bank's guidelines allow PPI accounts with full KYC to perform activities nearly equivalent to a bank account, including UPI payments.

Expansion and Strategic Growth

Jupiter has raised $165 million across multiple equity funding rounds, with a valuation of $654 million as of June 2023, according to data platform Tracxn. This latest licence enhances Jupiter's ability to offer a risk-free account, enabling customers to conduct UPI and similar transactions securely.

Jupiter joins its city-based peer Slice in the PPI ecosystem. Slice, also backed by Tiger Global, received its PPI licence last September. For Gupta, this marks the second major licence acquisition. Last year, Amica Financial Technologies, which operates Jupiter, obtained a non-banking finance company (NBFC) licence from RBI, with the lending business now housed under Amica Finance.

Market Potential and Industry Impact

The acquisition of the PPI licence positions Jupiter to leverage India's burgeoning digital payments market. With the increasing adoption of digital wallets and UPI payments, Jupiter is well-placed to cater to the evolving needs of tech-savvy consumers.

"Customers can operate a risk-free account and use the app for UPI and similar transactions only," Gupta added, highlighting the secure and user-friendly nature of Jupiter's services.

Jupiter's strategic expansion into the digital wallet space underscores its commitment to innovation and customer-centric services. By providing comprehensive financial solutions, Jupiter is poised to play a pivotal role in transforming the digital payments landscape in India.

Stay tuned for more updates as Jupiter continues to innovate and expand its offerings in the neobanking sector.

Founded by Jitendra Gupta, Jupiter is a leading neobanking startup based in Bengaluru. Backed by prominent investors such as Tiger Global and Peak XV Partners, Jupiter aims to simplify and enhance the banking experience for its users through innovative digital solutions.