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RBI Grants Decentro, Zoho, and Juspay Payment Aggregator Licenses
Published
3 months agoon
Along with Stripe, Zomato, and Tata Pay, Juspay, Zoho, and Decentro receive RBI approval for their payment aggregator businesses. Businesses can help customers and merchants transact by facilitating transactions through the approvals
Fintech companies Decentro and Juspay, as well as software-as-a-service provider Zoho, have received final permission from the Reserve Bank of India (RBI) to function as payment aggregators. With this license, these companies join other prominent competitors in the payments aggregator market, following the regulator’s strict standards.
Important Information about Payment Aggregator Licences for Decentro, Zoho, and Juspay
1. Recipients of Approval:
The RBI has granted the much-desired payment aggregator licenses to Juspay, Decentro, and Zoho.
Leading fintech companies like Razorpay and Cashfree, who obtained the license last year, join well-known brands like Stripe, Zomato, and Tata Pay, which were granted approval in January.
2. Consequences for Operations:
Payment aggregator licenses enable firms to provide merchants with payment services, hence streamlining consumer-business transactions.
These organizations combine consumer money and send it to retailers in predetermined intervals, making online transactions more effective.
Read also:-Maharashtra and Gujarat See the Launch of the “Kilkari” Mobile Health Service and Mobile Academy by Union Ministers
3. Overviews of Companies:
With support from Y Combinator, Decentro focuses on providing its APIs to neo-banks, marketplaces, and fintechs so they may combine banking solutions.
Juspay functions as an all-inclusive payment gateway, enabling transactions based on cards, wallets, and UPI.
Being one of the few enterprise SaaS companies to obtain the coveted payments license, Zoho stands out and demonstrates its adaptability in the world of digital payments.
4. Examining Regulations:
The RBI uses strict eligibility standards during the application process and proceeds cautiously when granting payment aggregator licenses.
Prominent entities such as Instamojo, Paytm Payments Services, and Freecharge encountered difficulties when their applications were rejected due to non-compliance with the necessary criteria, resulting in a suspension of the onboarding of new merchants.
5. Awaiting Clearance and Continued Procedures:
After gaining in-principle clearance, a number of well-known organizations, including PhonePe, Infibeam, Pine Labs, and Easebuzz, are awaiting the final approval.
As of February 2024, the applications for Cred (Dreamplug Paytech) and PayU are still being examined, a sign of continuous changes in the payment aggregator ecosystem.
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