RBI Approves Payment Aggregator Licence To Razorpay, Cashfree, OPEN
Razorpay, Cashfree Payments and OPEN Financial Technologies are one of the first entities in the India's fintech ecosystem to have received a full payment aggregator licence from the RBI.
The Reserve Bank of India granted final approval to Razorpay, a major payment processing company, to operate as a payment aggregator, the company said in a release on Tuesday.
"We are now open to onboard new businesses on our Payment Gateway platform!" a Razorpay spokesperson said. "Having received the new PA license, we now restart onboarding new customers..."
Not just Razorpay, Cashfree Payments and OPEN Financial Technologies have also received the final nod on payment aggregator licence by the RBI.
In 2022, the central bank had asked Razorpay, Cashfree Payments, PayU, and Paytm to stop onboarding new merchants till they get the final nod to operate as a payment aggregator. These fintech companies were already granted in-principle approval for the licence.
Having a payment aggregator licence solidifies the status of a fintech company as trustworthy, transparent and standardised as payment aggregators are directly under the purview of the RBI.
Razorpay, Cashfree Payments and OPEN Financial Technologies are one of the first entities in the India's fintech ecosystem to have received a full payment aggregator licence from the RBI.
"We have received the final authorisation to operate as a payment aggregator by the RBI. We are thrilled to announce that we are now onboarding businesses on Cashfree Payment Gateway," Cashfree wrote in a LinkedIn post on Tuesday.
Payment aggregators are the third-party service providers that allow merchants online to accept payments from customers by integrating them into their websites or apps. In other words, payment aggregators bridge the gap between merchants and acquirers.
Not all businesses can hook their operations up with a merchant account. That is where the payment aggregator business model can help simplify online money transfers.
"The enhanced capabilities will bolster our financial automation platforms, providing SMEs with advanced tools to streamline their financial operations and thrive in the digital era," Anish Achuthan, co-founder and chief executive officer of OPEN Financial Technologies, said in a press release on Tuesday.
