Amazon Pay, the fintech branch of e-commerce giant Amazon India, has been granted a payment aggregator license by the Reserve Bank of India (RBI), the firm announced on Monday.
The fintech startup has recently joined a list of organisations authorised by the central bank to function as payment aggregators (PA).
“We are excited and thankful to receive the final authorisation from the Reserve Bank of India (RBI) to function as a payment aggregator. We remain committed to simplify lives and fulfill the aspirations of merchants and customers,” an Amazon Pay spokesperson said in response to queries sent by Business Standard.
The company also stated that the approval from the banking regulator would allow it to strengthen its distribution channels.
“This allows us to further strengthen our distribution channels and deliver innovative solutions for our merchants and customers across India, providing them with secure, convenient, and rewarding digital payment experiences,” the spokesperson added.
This month, the RBI granted final approval for payment aggregator (PA) licences to two fintech firms, Decentro and Juspay, as well as enterprise software-as-a-service (SaaS) provider Zoho.
In January, food delivery giant Zomato, as well as fintech businesses Stripe and Tata Pay, were among those who were granted the license. They joined Razorpay, Cashfree Payments, and EnKash, which received clearance last year.
The RBI defines PAs as companies that allow e-commerce sites and merchants to accept multiple payment instruments from customers in order to fulfill their payment obligations without merchants having to construct their own payment integration system.
PAs help retailers connect with acquirers. According to the regulator, they can take client payments, pool them, and transmit them to merchants after a set time.
