India’s central bank, the Reserve Bank of India (RBI), recently granted “in-principle” approval to over 50 payment aggregators to act as online payment aggregators. While 32 approvals have been granted to the entities already in operation, 19 applications from new entities have also been approved. We provide a list of all the entities whose applications have been approved, are in process, or have been returned.
On 15 February 2023, India’s central bank, the Reserve Bank of India (RBI), granted ‘in-principle approval’ to 32 existing payment aggregators to act as online payment aggregators. Further, applications from 19 new entities were also approved.
This is the first time the RBI has released such a list of entities, indicative of how seriously it is monitoring developments in India’s digital and payments landscape.
Previously, relevant firms made private announcements about the RBI’s approval; from now onwards, official communication from the central bank can be expected as the sector gets better regulated.
Investors and businesses should note that the entity must receive “authorisation” in accordance with section 7 of the Payment and Settlement Systems Act of 2007; the grant of in-principle approval is not equivalent to authorisation.
After receiving the in-principle approval, the entity must provide the RBI with a System Audit Report (SAR) and a certificate from a Chartered Accountant (CA) stating that the net worth criterion has been met in order to be considered for “permission” [authorisation]. Further, the entities must meet all other guidelines’ requirements and, if any, additional requirements set down by the RBI.
Assess Market Entry
Evaluate India’s payments landscape, competitor environment, operating requirements, and suitable entry structure.How does the RBI’s rejection of applications impact popular payment aggregators and consumers?
Apart from granting approvals, the RBI also rejected a large number of applications from payment aggregators, including those from PayTM, PayU, Razorpay, and other companies. As a result, payment aggregators like CCAvenue and Plural from Pine Labs have experienced a rise in new user onboarding and gained more online merchants. According to news sources, CCAvenue saw an 18 per cent increase in new online merchant signups on its platform in the third quarter of October through December [2022], just after the RBI prohibited top payment aggregators from onboarding new merchants.
According to industry estimates, 70-80 per cent of new online merchant onboardings per month were made through Razorpay, PayU, Paytm, and Cashfree prior to the prohibition. BillDesk continued to lead the pack in terms of total payment value (TPV), followed by the impacted gateways. In an effort to reduce any potential risks and guarantee that they are working with partners who are completely compliant, existing partners of these impacted payment gateways are also bringing on fresh partners as a backup (who have been granted in-principle payment aggregator licenses by the RBI).
Newer direct-to-customer (D2C) and online sellers are likely to be impacted the most by the RBI’s decision and tightening of the online market payment ecosystem. These brands are concerned about issues like scalability and consumer experience.
The RBI’s suspension of new client onboarding, according to reports, has no significant impact on the existing users of the payment gateways in question.
Who are payment aggregators?
Payment aggregators are intermediaries that facilitate payments in online commercial transactions. These entities enable e-commerce websites, mobile apps, and merchants to accept various payment instruments from customers for completion of their payment obligations – without the need for merchants to create a separate payment integration system of their own.
The payment aggregators receive payments from the customers buying online and subsequently pool and transfer these payments to the merchants after a specific time period.
Eligibility requirement for licence to operate as payment aggregator
The payment aggregator applying to the RBI for a licence must be a company incorporated in India under the Companies Act, 1956/2013, and the Memorandum of Association (MoA) of the applicant entity must cover the proposed activity of operating as a payment aggregator.
Interestingly, the RBI’s guidelines state that such payment aggregators shall be allowed to continue their operations till they receive communication from the RBI regarding the status of their application.
Capital requirements
Payment aggregators should have a minimum net worth of INR 150 million (US$1.81 million) as of 31 March 2022 and a net worth of INR 250 million by the end of 31 March 2023. The net worth of INR 250 million (US$3.02 million) shall be maintained at all times thereafter. Payment aggregators that are not able to comply with the net worth requirement within the stipulated time frame shall wind up their payment aggregation business. The banks maintaining nodal / escrow accounts of such entities shall monitor and report compliance in this regard.
The net worth shall consist of paid-up equity capital; preference shares that are compulsorily convertible to equity; free reserves; balance in share premium account and capital reserves representing surplus arising out of sale proceeds of assets but not reserves created by revaluation of assets adjusted for accumulated loss balance; and book value of intangible assets and deferred revenue expenditure, if any. The compulsorily convertible preference shares can be either non-cumulative or cumulative, and they should be compulsorily convertible into equity shares, and the shareholder agreements should specifically prohibit any withdrawal of this preference capital at any time.
Details of payment aggregators with RBI-authorisation
Existing entities who can operate as online payment aggregators
Amazon (Pay) India Pvt Ltd, Paymate India Ltd, Razorpay Software Pvt Ltd, Pine Labs Pvt Ltd, and Zomato Payments Pvt Ltd are among the 32 existing payment aggregators that have been granted in-principle authorisation. Further, the RBI is still reviewing applications of an additional existing 18 payment aggregators.
Meanwhile, Freecharge Payments Technologies Pvt Ltd, PayTM Payments Services Ltd, PayU Payments Pvt Ltd, and Tapits Technologies Pvt Ltd are the four payment aggregators whose applications were returned by the RBI but are permitted to apply within 120 days from the date of return.
|
List of Existing Entities Which Have Received In-Principle Authorisation |
|
|
Sr. no |
Name of the entity |
|
1. |
1Pay Mobileware Private Limited |
|
2. |
Airpay Payment Services Private Limited |
|
3. |
Amazon (Pay) India Private Limited |
|
4. |
Cashfree Payments India Private Limited * |
|
5. |
Computer Age Management Services Limited |
|
6. |
Digiotech Solutions Private Limited |
|
7. |
Easebuzz Private Limited |
|
8. |
Finlogic Technologies India Private Limited |
|
9. |
Futuretek Commerce Private Limited |
|
10. |
Google India Digital Services Private Limited |
|
11. |
IndiaIdeas.com Limited |
|
12. |
Infibeam Avenues Limited |
|
13. |
Innoviti Payment Solutions Private Limited |
|
14. |
In-Solutions Global Limited |
|
15. |
Lyra Network Private Limited |
|
16. |
Mpurse Services Private Limited |
|
17. |
NSDL Database Management Limited |
|
18. |
NTT DATA Payment Services India Limited |
|
19. |
Open Financial Technologies Private Limited |
|
20. |
Paymate India Private Limited |
|
21. |
Paysharp Private Limited |
|
22. |
Phi Commerce Private Limited |
|
23. |
Pine Labs Private Limited |
|
24. |
Razorpay Software Private Limited * |
|
25. |
Reliance Payment Solutions Limited |
|
26. |
SRS Live Technologies Private Limited |
|
27. |
Stripe India Private Limited |
|
28. |
Tyche Payment Solutions Private Limited |
|
29. |
Vay Network Services Private Limited |
|
30. |
Worldline ePayments India Private Limited |
|
31. |
Xsilica Software Solutions Private Limited |
|
32. |
Zomato Payments Private Limited |
|
List of Existing Entities Whose Applications are Under Process |
|
|
Sr. no. |
Name of the entity |
|
1. |
Adyen India Technology Services Private Limited |
|
2. |
Appnit Technologies Private Limited |
|
3. |
Bhartipay Services Private Limited |
|
4. |
Dinero Payment Services Private Limited |
|
5. |
Dreamplug Paytech Solutions Private Limited |
|
6. |
Global Payments Asia-Pacific (India) Private Limited |
|
7. |
Hiveloop Internet Private Limited |
|
8. |
INSOnline India Private Limited |
|
9. |
Instamojo Technologies Private Limited |
|
10. |
Letzpay Solution Private Limited |
|
11. |
LivQuik Technology (India) Private Limited |
|
12. |
Marg Fintech Private Limited |
|
13. |
Nomisma Mobile Solutions Private Limited |
|
14. |
Paygate India Private Limited |
|
15. |
PhonePe Private Limited |
|
16. |
Senrysa Technologies Private Limited |
|
17. |
Unimoni Enterprise Solutions Private Limited |
|
18. |
Zaak Epayment Services Private Limited |
|
Existing Payment Aggregators Whose Applications Were Returned |
||
|
Sr. no |
Name of the entity |
Remarks |
|
1. |
Freecharge Payment Technologies Private Limited |
Application returned on 10 February 2023 |
|
2. |
PayTM Payments Services Limited |
Application returned on 25 November 2022 |
|
3. |
PayU Payments Private Limited |
Application returned on 10 January 2023 |
|
4. |
Tapits Technologies Private Limited |
Application returned on 10 February 2023 |
New payment aggregators who can operate as online payment aggregators
The RBI has given in-principle authorisation to 19 organisations among the new payment aggregators. This includes Tata Payments Ltd, Zoho Payment Technologies Pvt Ltd, and Mswipe Technologies Pvt Ltd.
SBI Payment Services Pvt Ltd is one of nine new payment aggregators whose applications are currently being reviewed.
|
List of New Entities Which Have Received In-Principle Authorisation |
|
|
Sr. no |
Name of the entity |
|
1. |
Boku Network Services Inc. Private Limited |
|
2. |
Concerto Software & Systems Private Limited |
|
3. |
Finacus Solutions Private Limited |
|
4. |
Fourth Dimension Solutions Limited |
|
5. |
Groww Pay Services Private Limited |
|
6. |
Hitachi Payment Services Private Limited |
|
7. |
Instanow Info Systems Private Limited |
|
8. |
Juspay Technologies Private Limited |
|
9. |
MMAD Communications Private Limited |
|
10. |
Mswipe Technologies Private Limited |
|
11. |
Nehat Tech Solutions Private Limited |
|
12. |
Payment Gateway Solutions Private Limited |
|
13. |
R360 Payment Services Private Limited |
|
14. |
Resilient Payments Private Limited |
|
15. |
Tata Payments Limited |
|
16. |
Toucan Payments (India) Private Limited |
|
17. |
Transaction Analysts (India) Private Limited |
|
18. |
Unlimint In Private Limited |
|
19. |
Zoho Payment Technologies Private Limited |
|
List of New Entities Whose Applications are Under Process |
|
|
Sr. no. |
Name of the entity |
|
1. |
Aurionpro Payment Solutions Private Limited |
|
2. |
Decfin Tech Private Limited |
|
3. |
Digidios Payments Services Private Limited |
|
4. |
Integra Micro Systems Private Limited |
|
5. |
KGC Infotech Private Limited |
|
6. |
Nium India Private Limited |
|
7. |
Payglocal Technologies Private Limited |
|
8. |
SBI Payment Services Private Limited |
|
9. |
Sodexo SVC India Private Limited |
Payment aggregators whose applications were returned / withdrawn
Also, 57 payment aggregator applications—some of which were withdrawn—were returned by the RBI. From this list, 17 currently operating payment aggregators were requested to halt their online payment aggregation operations and close their nodal/escrow accounts within 180 days of the application’s return date.
|
List of Payment Aggregators Whose Applications Were Returned / Withdrawn and Thus Cannot Operate |
|||
|
Existing payment aggregators were advised to stop online payment aggregation activity and close nodal / escrow account(s) within a period of 180 days from the date of return of the application. |
|||
|
Sr no. |
Name of the entity |
Whether existing or / new payment aggregator |
Remarks |
|
1. |
Akonto Payment Solutions Private Limited |
Existing |
Application returned on 19 January 2023 |
|
2. |
Aggrepay Payments Solutions Private Limited |
Existing |
Application returned on 08 February 2023 |
|
3. |
BrokenTusk Technologies Private Limited (Withdrawn) |
Existing |
Application returned on 07 November 2022 |
|
4. |
Ezetap Mobile Solutions Private Limited (Withdrawn) |
Existing |
Application returned on 10 February 2022 |
|
5. |
Flexmoney Technologies Private Limited |
Existing |
Application returned on 17 October 2022 |
|
6. |
fonePaisa Payment Solutions Private Limited |
Existing |
Application returned on 10 October 2022 |
|
7. |
FSS Grameenpay Private Limited |
Existing |
Application returned on 02 February 2022 |
|
8. |
Golden Legand Leasing and Finance Limited |
Existing |
Application returned on 20 January 2023 |
|
9. |
Kopayments Private Limited |
Existing |
Application returned on 29 December 2022 |
|
10. |
Paykun Payment Solutions Private Limited |
Existing |
Application returned on 02 February 2022 |
|
11. |
Payswiff Solutions Private Limited |
Existing |
Application returned on 19 October 2022 |
|
12. |
Synergistic Financial Networks Private Limited (Withdrawn) |
Existing |
Application returned on 07 October 2022 |
|
13. |
Vmobo Mobile Private Limited |
Existing |
Application returned on 08 December 2021 |
|
14. |
Volks Electronics Private Limited |
Existing |
Application returned on 03 December 2021 |
|
15. |
Worldline India Private Limited (Withdrawn) |
Existing |
Application returned on 28 September 2022 |
|
16. |
Wunderbaked Technologies Private Limited |
Existing |
Application returned on 20 January 2023 |
|
17. |
Zenex E-Commerce Private Limited |
Existing |
Application returned on 03 December 2021 |
|
18. |
Aceware Fintech Services Private Limited |
New |
Application returned on 29 November 2022 |
|
19. |
AGDP Fintech Private Limited |
New |
Application returned on 15 December 2021 |
|
20. |
Apexpay Technologies Private Limited |
New |
Application returned on 07 October 2022 |
|
21. |
Asian Checkout Private Limited |
New |
Application returned on 20 October 2022 |
|
22. |
BeBuoy Infoservices Private Limited |
New |
Application returned on 27 November 2020 |
|
23. |
Bongdeal India Private Limited |
New |
Application returned on 10 November 2022 |
|
24. |
CAMS Payment Services Private Limited |
New |
Application returned on 25 October 2021 |
|
25. |
Cash Friend Fintech Private Limited |
New |
Application returned on 10 August 2022 |
|
26. |
Commonwealth Inclusive Growth Services Limited |
New |
Application returned on 07 October 2022 |
|
27. |
Ditya Finance Private Limited |
New |
Application returned on 10 December 2021 |
|
28. |
E-Meditek Global Private Limited |
New |
Application returned on 30 September 2022 |
|
29. |
ePaisa Services Private Limited |
New |
Application returned on 27 July 2020 |
|
30. |
Eutro Agro Products Private Limited |
New |
Application returned on 10 November 2022 |
|
31. |
GoKwik Commerce Solutions Private Limited |
New |
Application returned on 02 November 2022 |
|
32. |
Hindon Mercantile Limited |
New |
Application returned on 10 January 2023 |
|
33. |
InCashMe Mobile Wallet Service Private Limited |
New |
Application returned on 30 May 2022 |
|
34. |
Indian Railway Catering and Tourism Corporation Limited |
New |
Application returned on 26 February 2021 |
|
35. |
Ippopay Technologies Private Limited |
New |
Application returned on 13February 2023 |
|
36. |
Iserveu Technology Private Limited |
New |
Application returned on 23 September 2021 |
|
37. |
Kashind Financiers Limited |
New |
Application returned on 10 December 2021 |
|
38. |
Kedarpay Solutions Private Limited |
New |
Application returned on 12 January 2023 |
|
39. |
Khatabook Technologies Private Limited |
New |
Application returned on 27 January 2023 |
|
40. |
Kredx Platform Private Limited |
New |
Application returned on 07 December 2022 |
|
41. |
Naffa Innovations Private Limited |
New |
Application returned on 13 October 2021 |
|
42. |
Nearby Technologies Private Limited |
New |
Application returned on 26 July 2022 |
|
43. |
Newbazaar Technologies Private Limited |
New |
Application returned on 10 October 2022 |
|
44. |
Ola Financial Services Private Limited |
New |
Application returned on 28 September 2022 |
|
45. |
Pay Point India Network Private Limited |
New |
Application returned on 28 October 2022 |
|
46. |
Paytekk India Private Limited |
New |
Application returned on 14 October 2022 |
|
47. |
Prevxee E-commerce (India) Private Limited |
New |
Application returned on 10 November 2022 |
|
48. |
Rapyd Aggregator Network India Private Limited |
New |
Application returned on 29 September 2021 |
|
49. |
Rupifi Technology Solutions Private Limited |
New |
Application returned on 10 November 2022 |
|
50. |
Safee Peee India Private Limited |
New |
Application returned on 10 November 2022 |
|
51. |
Safexpay Payments Aggregator Private Limited |
New |
Application returned on 22 November 2021 |
|
52. |
Skilworth Technologies Private Limited |
New |
Application returned on 26 September 2022 |
|
53. |
SPAY Fintech Private Limited |
New |
Application returned on 18 October 2022 |
|
54. |
Twid Rewards Global Private Limited |
New |
Application returned on 07 December 2022 |
|
55. |
Virtual Galaxy Infotech Private Limited |
New |
Application returned on 28 December 2020 |
|
56. |
Yalamanchili Software Exports Private Limited |
New |
Application returned on 29 August 2022 |
|
57. |
Zhudao Infotech Private Limited |
New |
Application returned on 06 January 2023 |
This article was originally published on 20 February 2023. It was last updated 21 February 2023.
Unlock the Full Article
Share a few details to continue reading
