Razorpay, Pine Labs get payment aggregator licence: Report
The Reserve Bank of India (RBI) has granted payment aggregator licences to online payment providers such as Razorpay, Stripe and Pine Labs, according to reports.
The Reserve Bank of India (RBI) has granted payment aggregator licences to online payment providers such as Razorpay, Stripe and Pine Labs, according to reports.
These companies will now be able to legally receive, process, pool and transfer user payments to merchants.
The in-principle approval comes after months of deliberations at the RBI which is now expected to release a list of companies that will be allowed to do the same.
These companies will come under the direct purview of the RBI while providing payment services to merchants, leading to standardised and regulated payments ecosystem.
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The RBI had in March 2020 mandated that all payment aggregators need authorisation by it, especially if they are not a registered bank.
Besides Pine Labs, Razorpay, other companies such as PhonePe, BharatPe, Cred, Tata Group, Amazon, Reliance Industries, Zomato had applied for the licence.
Payment aggregators usually take money from users in return for a product or service promised by a merchant and pays the merchant later after the product or service has been delivered.
E-commerce companies that do not get a payment aggregator licence will have to tie up with banks to continue transactions on their platforms.
