Jio Financial's payments business turns around as digital payment value jumps 2.5x, deposits rise 72%

Jio Financial Services Ltd. (JFSL) reported a strong turnaround in its payments businesses during the first quarter of FY27, with both Jio Payments Bank Ltd. and Jio Payment Solutions Ltd. achieving operational improvements as the Reliance Group company scaled up its digital financial services ecosystem.

The company said the payments businesses delivered improved operating performance alongside robust growth in transactions, customer deposits and fee income, contributing to the overall momentum across its lending, payments, investment and insurance verticals.

Jio Payment Solutions, the company's merchant acquiring and payment processing arm, recorded a Total Payment Value (TPV) of ₹19,208 crore during the June quarter, a 2.5-fold increase year-on-year.

The business also posted sharp growth in revenue metrics, with gross fee and commission income rising 6.4 times year-on-year to ₹176 crore. Net fee and commission income stood at ₹24 crore, up 3.4 times from a year earlier.

JFSL said the business continued to improve profitability by expanding its net processing margins to 12 basis points, while also launching a cross-border settlement infrastructure to facilitate international remittances for Indian exporters.

Jio Payments Bank also posted significant operational gains during the quarter.

Its total income increased 7.7 times year-on-year to ₹83 crore, while customer deposits rose 72% to ₹617 crore.

The bank's Current Account Savings Account (CASA) customer base expanded 51% year-on-year to 3.9 million accounts, with the average deposit per customer increasing 16% to ₹1,540, indicating stronger customer engagement and higher balances.

The bank also significantly expanded its distribution footprint. Its active Business Correspondent (BC) network grew to 527,037 touchpoints, compared with 50,192 in the corresponding quarter last year and 378,568 in the previous quarter.

In addition, Jio Payments Bank is now managing digital toll payment operations across 20 toll plazas, including one FASTag Automatic Number Plate Recognition (ANPR)-based Multi-Lane Free Flow project that enables barrierless toll collection.

The strong performance of the payments businesses formed part of a broader improvement across Jio Financial's operations.

For the quarter ended June 30, the company reported consolidated total income (excluding dividend) of ₹1,496 crore, up 141% year-on-year, while profit after tax (PAT) surged 156% to ₹830 crore.

Commenting on the results, Hitesh Sethia, Managing Director and CEO, Jio Financial Services, said the sustained momentum across business verticals reflected the strength of the company's full-stack financial services ecosystem.

He said the company is leveraging artificial intelligence and data analytics to improve efficiencies, while continuing to expand lending, investment products and payments businesses. Sethia added that Jio Financial is also accelerating investments in its newer businesses, including its joint ventures with BlackRock and Allianz, which are expected to contribute meaningfully over time.