Despite the Reserve Bank of India’s increased scrutiny of the fintech sector, fintech startups continue to receive regulatory approval to function as payment aggregators.
On February 6, two fintech startups, Juspay and Decentro, obtained the final license to operate as payment aggregators. They will now join the ranks of Razorpay, Cashfree, Zomato, and others who were granted the license previously.
Juspay, previously functioning as a payment gateway for ecommerce payments, has expanded its services to become a payment aggregator. On the other hand, Decentro, originally a technology company, facilitates financial services such as lending and KYC for ecommerce and other consumer-facing entities.
“The Reserve Bank’s inputs helped shape our payments business while adhering to the highest standards of compliance & security. This is a crucial step for us to enter the next growth phase, where we look forward to building industry-tailored, open banking payment solutions for regulated entities, fintechs, MSMEs, and enterprises,” said Decentro cofounder Pratik Daudkhane.
Zoho, a software-as-a-service startup, achieved the payment aggregator licence from the RBI on February 2, marking a significant milestone as the first enterprise SaaS player to secure this approval.
“The regulator is issuing full licences one after the other. We are expecting more players to get the final nod over the next two months,” said a senior executive at a payments company.
The RBI initially issued guidelines on payment aggregator licences in March 2020, and Razorpay, Cashfree, and Open were among the first recipients in December of the same year. Other notable players, including Zomato, DigiO, Google, and Tata Digital, have also acquired the payments licence.