Fintech platform Razorpay on Monday said it has received in-principle approval by the Reserve Bank of India (RBI) for a Payment Aggregator (PA) license.
The central bank issued a payment aggregator framework in March 2020, stating that payment gateways will be mandated to have a license in order to acquire merchants and provide them with digital payments acceptance solutions.
Under RBI's strict evaluation process, more than 185 fintech enterprises and startups submitted their proposals for a payment aggregator license.
"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," said Harshil Mathur, CEO and Co-founder of Razorpay.
The few firms authorized to operate as payment aggregators in India will come under the direct purview of the RBI.
Established in 2014, the company currently provides technology payment solutions to over 8 million businesses.
"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," said Mathur.
The company has received more than $741 million from investors to date.
(With inputs from IANS)
