Key Highlights:
- SaaS major Zoho Corporation to launch consumer payments application Zoho Pay, marking expansion from enterprise solutions into retail fintech segment
- Application will operate as standalone product and integrated feature within Arattai messaging platform, currently recording 48 million Play Store downloads
- Move represents strategic diversification for Rs 8,703 crore revenue company, with regulatory approval already secured through payment aggregator license
OCTOBER 27, 2025 – Zoho Corporation, a privately held software-as-a-service unicorn, has announced plans to launch Zoho Pay, a consumer-facing digital payments application, entering direct competition with established players including Google Pay, PhonePe, and Paytm in India’s rapidly expanding digital transactions market.
The application, currently undergoing internal testing, will be deployed as both a standalone product and an integrated feature within Arattai, the company’s messaging platform launched in 2021, according to Sivaramakrishnan Iswaran, Chief Executive Officer of Zoho Payments Tech.
Market Entry and Regulatory Framework
The Chennai-headquartered firm secured final approval for its payment aggregator license from the Reserve Bank of India in February 2024, establishing the regulatory foundation for consumer payment operations. This follows the company’s August 2024 launch of Zoho Payments, an enterprise-focused gateway enabling businesses to process transactions through UPI, cards, and net banking channels.
“Zoho Pay is designed to offer a smooth, secure, and integrated payment experience,” Iswaran stated in an interview with industry publication Moneycontrol. “It will be available both as a standalone app and within Arattai, enabling users to make transactions without leaving their chat interface.”
Financial Performance and Strategic Context
Zoho Corporation reported operating revenue of Rs 8,703.6 crore in FY23, representing 30 percent year-over-year growth from Rs 6,710.7 crore in FY22. Net profit increased 3 percent to Rs 2,836 crore during the same period. The company crossed the $1 billion revenue threshold for the first time in FY23.
The move into consumer payments represents a significant strategic pivot for the enterprise software provider, which has historically focused on business-to-business solutions across cloud computing, customer relationship management, and enterprise resource planning segments.
Platform Integration Strategy
Arattai, positioned as a privacy-focused alternative to mainstream messaging applications, has recorded substantial growth in 2025, with downloads increasing from niche adoption to 48 million installations on Android devices alone. The integration of payment functionality mirrors strategies employed by global technology firms including WeChat and WhatsApp, which have successfully embedded financial services within communication platforms.
The dual-deployment model allows Zoho to address both users seeking dedicated payment applications and those preferring integrated solutions within existing communication workflows. This approach potentially reduces customer acquisition costs while leveraging existing user relationships.
Competitive Landscape Analysis
India’s digital payments sector processed approximately 640 billion UPI transactions daily as of October 2025, with UPI accounting for 85 percent of the country’s digital payment volume. Google Pay and PhonePe collectively dominate market share, controlling an estimated 80-plus percent of transaction volumes.
Industry analysts note that while market entry barriers remain significant due to entrenched competition, Zoho’s existing business customer base—comprising millions of small and medium enterprises utilizing the company’s software suite—provides a differentiated channel for merchant adoption and customer acquisition.
Broader Fintech Roadmap
Iswaran indicated that consumer payments represent the initial phase of a comprehensive fintech expansion strategy. The company plans to introduce complementary services including lending products, insurance distribution, securities broking, and wealth management solutions in subsequent phases.
“Our approach to fintech is incremental,” Iswaran explained. “We’re starting with payments and gradually expanding into other financial services.”
The company has established partnerships with industry infrastructure providers, including collaboration with NPCI Bharat BillPay Ltd, the National Payments Corporation of India’s bill payment subsidiary, announced at the Global Fintech Fest 2025 in Mumbai.
Implementation Timeline
Zoho has not disclosed a definitive commercial launch date for Zoho Pay. Company sources indicate phased rollout over coming months, with internal testing protocols currently underway. The rollout strategy will likely prioritize existing Arattai users before broader market deployment.
Co-founder Sridhar Vembu has previously stated the company’s strategic focus on developing capabilities across critical technology domains including cloud infrastructure, semiconductor technology, and application development, positioning fintech expansion within a broader technological diversification framework.
Market Implications
The entry of an established enterprise software provider into consumer payments introduces additional competitive dynamics to an already consolidated market. Success metrics will include user acquisition rates, transaction volumes, and retention among Arattai’s existing user base, alongside the application’s performance as a standalone product against incumbent platforms offering extensive merchant networks and cashback incentive structures.
Financial services analysts will monitor whether Zoho’s enterprise relationships translate into competitive advantages in merchant acceptance and whether privacy-focused positioning resonates with consumers increasingly concerned about data handling practices by foreign technology corporations.
About Zoho Corporation
Headquartered in Chennai with U.S. operations based in Austin, Texas, Zoho Corporation is a privately held, profitable technology company employing over 18,000 personnel globally. The company operates more than 55 applications across business categories including finance, sales, marketing, and operations management.
