Amazon Pay, the fintech arm of Amazon India, announced on Monday that it has been granted a payment aggregator (PA) licence by the Reserve Bank of India (RBI).
Amazon Pay is among the latest companies to receive the RBI's PA licence, with a total of 10 entities obtaining it since the beginning of 2024. Notable recipients include Zomato, Juspay, Decentro, Mswipe, Zoho, and Stripe, underscoring the dynamic landscape of fintech innovation in India.
In addition to the payment aggregator licence, Amazon Pay already holds a Prepaid Payment Instruments (PPI) licence, allowing it to operate wallet services like Amazon Pay balance: Money, in accordance with RBI regulations.
The regulatory approval, received on February 20, empowers Amazon Pay to act as an intermediary between merchants and payment processors or banks. Essentially, this licence enables the platform to accept payments on behalf of multiple merchants, consolidate the funds, and subsequently distribute them to the respective merchants.
A licence for payment aggregation permits a company to function as an intermediary, facilitating transactions between merchants and payment processors or financial institutions. This payment aggregator model is commonly utilised by businesses operating online marketplaces with multiple sellers offering goods or services. The licence ensures adherence to regulatory standards, encompassing financial and security requirements set by relevant authorities.
Expressing dedication to enhancing user experiences, an Amazon Pay spokesperson emphasised the company's commitment to fulfilling aspirations for merchants and customers.
“We are excited and thankful to receive the final authorisation from Reserve Bank of India (RBI) to function as a Payment Aggregator. We remain committed to simplify lives and fulfill aspirations of merchants and customers. 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,” an Amazon Pay spokesperson says.
This recent approval aligns Amazon Pay with other fintech firms authorised by the central bank to operate as payment aggregators.
In December of last year, fintech enterprises Razorpay and Cashfree Payments were granted payment aggregator licences by the RBI. In a significant development, the RBI has also granted them permission to onboard new merchants.
In March 2022, the RBI issued guidelines for payment aggregators in the country. According to these guidelines, payment aggregators are required to secure a licence to onboard merchants and offer them digital payment acceptance solutions.
Leave a Comment
Your email address will not be published. Required field are marked*