PayU receives RBI's
in-principle approval for payment aggregator role
Fintech firm PayU has received an
in-principle approval from the Reserve Bank of India to operate as a payment
aggregator, the company said on Wednesday. With in-principle approval in place,
PayU can now on-board new merchants and provide them digital payment services.
This will allow PayU to begin
on-boarding new merchants, offering them digital payment solutions.
In January 2023, the RBI had returned
the fintech firm's application to operate as a payment aggregator due to its
complex corporate structure and directed it to reapply. Following this, PayU had
to pause on-boarding new merchants for its online payment aggregation business.
Anirban Mukherjee, Chief Executive
Officer (CEO) of PayU said, This licence is pivotal in our mission to
establish a globally renowned digital payment infrastructure rooted in India.
Aligned with the government s Digital India initiative and the RBI's
forward-thinking regulations, we are dedicated to driving digitisation and
financial inclusion, particularly for small merchants.
What is a payment
aggregator?
A payment aggregator is a financial
technology company that simplifies the process of accepting electronic payments
for businesses. It acts as an intermediary between the business and the
financial institutions that handle payment processing, allowing businesses to
avoid the complexities of establishing direct relationships with these
entities.
Payment aggregators enable businesses to
accept a diverse range of payment options without the upfront work, whether
payment is by credit card, debit card, e-wallet, or bank transfer. This is an
easy and cheap way of accepting payments that can help a small business take
off quicker, as there are no waiting days or months to start transacting.
www.business-standard.com
dt. 25.04.2024