Razorpay, one of the fastest-growing fintech companies, has recently received Payment Aggregator (PA) preliminary clearance license in India from the Reserve Bank of India.
In March 2022, the RBI released a payment aggregator framework that required licences for payment gateways to acquire businesses and offer them solutions for accepting digital payments.
According to the RBI guidance, it is mandatory for a non-bank platform to opt for a license from the central bank to operate under the Payment and Settlement Systems Act, 2007 (PSSA).
Razorpay was a frontrunner for a licence as a payment aggregator-“As a company that has always adhered to regulatory governance while innovating towards building the financial backbone for Indian businesses,” the company said in a statement.
The central bank’s rigorous evaluation process attracted more than 185 fintech businesses and startups to submit their applications for a licence as a payment aggregator.
A few companies are said to have received in-principle permission from the RBI for a Payment Aggregator license, and a few more are anticipated in the upcoming months.
According to Harshil Mathur, CEO and Cofounder of Razorpay, “With the digital payments space coming under direct RBI regulation, we can expect to not only see an immense upsurge in online payment adoption and trust but also witness a magnified surge in digital payment innovations in the coming years. With this trust placed in us, we will continue building the financial backbone for businesses in India, one that is more cashless, more frictionless, more secure, and more connected.”
He further informed, “We are really excited to have received our Payment Aggregator License. We at Razorpay, recognise that we have a responsibility to innovate by not just looking at the future but taking analogies from the past, and strengthening the financial ecosystem of tomorrow, so that millions of businesses, small and big can flourish. This event only further strengthens our commitment to never stop reinventing. We want to create new products and build experiences that will change the lives of millions of businesses and consumers.”
The company believes that being granted a Payment Aggregator (PA) License by the RBI itself is a confirmation that the company is the nation’s full-stack financial platform and reiterates the faith that more than 8 Mn businesses have in the platform to foster and support their company expansion.
Razorpay has emerged as India’s fastest-growing fintech because of its product innovation that is intended to empower and facilitate unbridled growth for small businesses, said the company.
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With its product suite, Razorpay’s payment system enables companies to receive, handle, and disperse payments. The method of payment was established by a group of IIT Roorkee graduates. It’s a particular payment method linked to several banking systems.
All payment methods, including credit card, debit card, net banking, UPI, and well-known wallets like JioMoney, MobiKwik, Airtel Money, FreeCharge, Ola Money, and PayZapp, are accessible through it.
Razorpay aims to be able to further its vision of making digital payments accessible for all Indian businesses with the license.
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