Source: Inc42
Indian logistics-tech firm BlackBuck has revealed that its subsidiary, TZF Logistics Solutions Pvt Ltd, has obtained a Prepaid Payment Instrument (PPI) licence from the Reserve Bank of India (RBI).
The company advised via a stock exchange filing, that the licence will enable TZF Logistics to develop and run a payment system for prepaid instruments such as to spend using digital wallets and prepaid cards.
Any company that issues and administers PPIs must be registered with RBI under India’s Payment and Settlement Systems Act, 2007.
Prepaid Payment Instruments (PPIs) are methods of payment that let the holder store money in a digital form and later use it to transact financially, like:
Purchases of goods and services
- Fuel, tolls, or food
- Sending and receiving money electronically
- Other financial services
In India, PPIs are commonly found in mobile wallets, prepaid cards, and gift cards. The money stored in a PPI can only be utilized until the balance is lost or it is loaded.
What are BlackBuck’s plans for it?
“The license will help TZF Logistics Solutions Pvt Ltd, wholly owned subsidiary of the company, set up and operate a payment system for prepaid payment instruments,” BlackBuck said in its filing.
Truckers may soon be able to use a BlackBuck digital wallet to pay for fuel and tolls (via FASTag payment), vehicle operational expenses, etc. The PPI licence could help lessen the burden of daily transactions for truckers, so they would not need to carry cash as much, and track expenses in more detail.
About TZF Logistics
TZF Logistics Solutions Pvt Ltd, a fully owned subsidiary of Zinka Logistics Solutions Ltd, was acquired by Zinka Logistics Solutions Ltd, the parent company of BlackBuck in its Initial Public Offerings (IPO) in the stock exchange. It is a company that provides tech-based logistics services. Based on previous filings made by BlackBuck, TZF helps customers hire different forms of vehicles like:
- Trucks
- Lorries
- Cold storage vans
- Fleet taxis
- Containers
With the adoption of mobile payments, TZF will form another layer of value with their transport services.
Why This Is Important
BlackBuck already operates BlackBuck Finserve, a financial arm that helps stage loans for used commercial vehicles. The addition of PPI; therefore, is building a more comprehensive digital ecosystem for the logistics sector.
This development positions BlackBuck as a one-stop solution for transporters, providing everything for them from vehicle booking to loans and now digital payments. This development also signals a larger trend of logistics businesses stepping into the fintech space, to better service their customers and grow their platform as well.
