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Is the RBI’s approval of a payment aggregator beneficial for the regulated payments landscape?

By Puja Sharma

December 22, 2023

  • B2B Merchants
  • BNPL
  • Cashfree Payments
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RBI, payment regulationsEnKash Secures Payment Aggregator License from RBI India– EnKash, facilitating Corporate Payments & enabling innovative offerings for businesses, has successfully secured regulatory approval from the Reserve Bank of India (RBI) to operate as a payment aggregator under the brand name “Olympus”.

Similarly, Cashfree Payments, India’s payments and API banking company announced that it has become one of the first payment service providers to receive the Payment Aggregators license from the RBI. Cashfree Payments is open to onboarding merchants from across the country.

What is a payment aggregator?

A payment aggregator is like a middleman for online sellers. Imagine you’re running an online store, and you want to accept payments from customers. Instead of dealing with multiple banks and complicated processes, you can use a payment aggregator.

Here’s how it works: When a customer buys something from your online shop, the payment aggregator steps in. It helps to connect your store with banks to process digital payments smoothly. You don’t need to set up separate connections with each bank.

At the end of the day (or after a set time), the payment aggregator gathers up all the payments your customers made and puts that money directly into your business bank account. So, it simplifies the payment process for you as a seller.

According to guidelines from the Reserve Bank of India (RBI), payment aggregators make it easier for online sellers by handling the technical stuff. They allow your online store to accept different types of payments without you having to figure out how to integrate each payment method separately. It’s like having a payment helper that connects you with the banks and ensures you get your money hassle-free.

Way ahead

The approval from the RBI reinforces EnKash’s commitment to compliance and adherence to the highest standards in the financial technology industry. The regulatory approval reaffirms EnKash’s position as a trustworthy player in the FinTech space, and the company is now poised to bring further innovation to the B2B payment business. EnKash is eager to leverage its expertise and technological capabilities to provide businesses with seamless and secure payment solutions.

The milestone also underscores our commitment to providing seamless, innovative, and reliable payment solutions, further solidifying our position as a trusted partner for businesses looking to thrive in the digital economy.” Since its launch, the company has helped over 2,50,000 businesses digitize and decentralize their corporate payments by offering them a comprehensive suite of solutions to facilitate secure and efficient financial transactions. EnKash helps businesses optimize their spending by managing all their finances in one place.

Cashfree spokesperson said, “Securing the Payment Aggregator (PA) license from the RBI is a pivotal moment for Cashfree Payments, affirming our focus on compliance and highlighting the significance of a well-regulated payments landscape. We are now onboarding new merchants on our payment gateway. We are very excited about this new phase of our journey, where we continue to  drive exponential growth and retain our market leadership as the preferred aggregator in the payments space.”

Currently, Cashfree Payments enables more than 3,00,000 businesses with payment collections, payouts, bulk refunds, expense reimbursements, loyalty and rewards product offerings. It has launched multiple products across Identity verifications, escrow management, BNPL, orchestration platform and cross border payments in the last one year.

 

 

 

 

 

 

 

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