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Source- This post on Payment aggregator approval by RBI has been created based on the article “Several startups get RBI approval to operate as payment aggregators” published in ” Business Standard“.
Why in the news?
Two fintech startups Decentro and Juspay have received final authorisation from the RBI for payment aggregator (PA) licences.
About Payment aggregator
| Aspect | Details |
| Introduction | They are companies that facilitate online payments by acting as intermediaries between the customer and the merchant. |
| Function | 1) They typically provide a range of payment options to customers, including credit and debit cards, bank transfers, and e-wallets. 2) Payment aggregators collect and process payment information, ensuring that transactions are secure and reliable. 3) Businesses can avoid the need to set up and manage their own payment processing systems, which can be complex and expensive. |
| Features | Multiple Payment Options: Payment aggregators offer a range of payment options to customers, making it easier for them to pay for goods and services. Secure Payment Processing: Payment aggregators use advanced security measures to ensure that transactions are safe and secure. Fraud Detection and Prevention: Payment aggregators use algorithms and machine learning to detect and prevent fraud, reducing the risk of chargebacks and other payment disputes. Payment Tracking and Reporting: Payment aggregators provide detailed reports on payment transactions, making it easier for businesses to manage their finances and reconcile their accounts. |
| Types | 1) Bank Payment Aggregators 2) Third-Party Payment Aggregators |
| RBI criteria | 1) Non-bank payment aggregators need to have a net worth of ₹15 crore by 15th March 2021 and a net worth of ₹25 crore by 31st March 2023. 2) It must also be compliant with global payment security standards. |
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