Easebuzz gets in-principle approval from RBI for payment aggregation

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Payment gateway Easebuzz said on August 10 that it has received in-principle approval from the Reserve Bank of India (RBI) for Payment Aggregator (PA) authorization.

Easebuzz joins companies such as Razorpay, Stripe, Pine Labs and MSwipe that have received in-principle approval for the license.

Rohit Prasad, MD & CEO of Easebuzz said, "RBI regulation definitely brings in more trust towards the digital payment ecosystem and allows players like us to innovate, so as to strengthen and accelerate the growth of digital payments in the country."

"Our focus is on creating secure, cutting-edge and easy-to-use Payment Solutions that are more accessible to Indian SMEs and empowering them to be the growth drivers for the $5 trillion economy dream."

The 8i Ventures, Varanium Capital, and Guild Capital-backed startup is a digital platform where businesses can include technology-based solutions which are integrated with payments so as to digitize collections. The company has created an APIs-based platform to offer Medium Small and Micro Enterprises (MSMEs) solutions which could solve their collection-related problems and also bring value in terms of subsidized pricing, easy to integrate API’s and availability of all payment modes for the end user.

In March 2020, RBI issued guidelines to regulate the Payment Aggregators (PAs) and Payment Gateways (PGs) that facilitate payments in the online space. The guideline defines ‘payment aggregators’ as entities that facilitate e-commerce sites and merchants to accept various payment instruments from the customers for completion of their payment obligations without the need for merchants to create a separate payment integration system of their own.

PAs facilitate merchants to connect with acquirers. In the process, they receive payments from customers, pool and transfer them on to the merchants after a time period.

Moneycontrol reported on August 9 that MSwipe, which mainly provides point of sales (PoS) devices for offline payments, has plans to enter the online payments space after receiving the license.