2, March, 2024
HomeBusinessRBI Grants Payment Aggregator Licenses to Zoho, Juspay, and Decentro

RBI Grants Payment Aggregator Licenses to Zoho, Juspay, and Decentro

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The Reserve Bank of India (RBI) has recently granted final authorization to prominent fintech companies, including Juspay and Decentro, as well as software-as-a-service firm Zoho, enabling them to operate as payment aggregators (PAs).

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This significant approval places these companies alongside industry leaders like Stripe, Zomato, and Tata Pay, all of whom received the regulator’s approval in January.

The PA license bestowed upon these companies empowers them to provide essential payment services to merchants by accepting a variety of payment instruments from customers. Payment aggregators play a crucial role in collecting funds from customers and subsequently transferring them to merchants within a specified time frame.

Among the companies securing the PA license, Decentro, backed by Y Combinator, specializes in enabling neo-banks, marketplaces, and fintechs to seamlessly integrate banking solutions through its APIs. Juspay operates as a full-stack payment gateway, facilitating diverse transactions including card, wallet, and UPI-based payments. Notably, Zoho stands out as one of the few enterprise SaaS firms to acquire this highly coveted payments license.

The RBI’s meticulous approach to PA approvals is evident in its stringent criteria, ensuring that only eligible and capable applicants receive authorization. Past applicants such as Instamojo, Paytm Payments Services, and Freecharge faced returned submissions due to unmet eligibility requirements, leading to a temporary halt in new merchant onboarding.

Notably, several prominent players in the fintech landscape, including PhonePe, Infibeam, Pine Labs, and Easebuzz, are still awaiting final approval after receiving in-principal approval. Meanwhile, applications from CRED (Dreamplug Paytech) and PayU are currently under processing as of February 2024.

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This cautious regulatory approach underscores the RBI’s commitment to maintaining the integrity and reliability of payment aggregator services in the Indian fintech sector.

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