This comes as Zomato Payments, the wholly-owned subsidiary of food delivery platform Zomato, last week voluntarily surrendered the certificate of authorisation issued by the Reserve Bank of India (RBI) to operate as an online payment aggregator.
Company executives and those advising players in fintech say while it is difficult to pinpoint what prompted the company to take the decision, it is perhaps a combination of factors like a firm waiting to focus on its core strength of food delivery and de-leverage its exposure to non-core business like payments.
Experts say some players may withdraw their PA applications or surrender their licences owing to aforementioned challenges.
"I would not be surprised if more payment aggregators do a rethink.
This is something similar we saw eight years ago in the payment banks space.
Lots of players came in and many of them gave up their licences," said Ranadurjay Talukdar, partner & payments sector leader, EY India.
Zomato had cited "commercial viability" of its online payment aggregator business as it surrendered its licence.
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