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July 9, 2022

Pine Labs, Razorpay, Stripe to get payment aggregator licence in India

Pine Labs, Razorpay and American payments player Stripe have secured in-principal approval for payment aggregator (PA) licence from the Reserve Bank of India (RBI), reported ET citing people aware of the development.

These firms are required to conduct an audit within the next six months to secure the licence.

Payment aggregators allow e-commerce sites and merchants to accept several payment instruments from customers for completing their payment obligations while sparing merchants from setting up their own separate payment integration systems.

RBI is expected to reveal a complete list of the payment firm which have been granted approval to operate as payment aggregators in the country shortly, according to sources.

Around 185 fintech firms, including Razorpay, Cred, and PhonePe, are said to have applied for the licence.

In the last few months, the Indian apex bank has been holding presentations with payment gateways and other fintech firms that are seeking the PA licence.

Fintech firm 1Pay Mobileware is said to have won the regulatory nod from the RBI for PA licence.

A person aware of the development told ET: “Companies like Pine Labs and Razorpay are among the leading names that have got the licence, but the broader list is expected to have more names.”

Spokespersons for Pine Labs, Stripes and Razorpay did not comment on the news.

The payment aggregator framework, which was set out in March 2020, allows only RBI-approved firms to acquire and provide payment services to merchants.

Such firms will be under the direct supervision of the central bank.

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