Digital payment processing firm, Worldline ePayments India on December 21 received in-principle authorisation from the Reserve Bank Of India to act as a payment aggregator (PA).
Worldline ePayments India is part of Worldline Group, which is a financial services company that provides services like in-store and online commercial acquiring, secure payment processing and other such digital services.
“We work with merchants from various segments such as ecommerce, BFSI, retail, utilities, education, travel and hospitality for digital payments. The in-principle authorisation from the RBI is a testimony to our commitment towards building a digital payment ecosystem in India,” Worldline India Chief Executive Officer Ramesh Narasimhan said.
The RBI has been proactive in introducing regulations and frameworks to help the entire digital ecosystem. These initiatives enhance trust among end-users and increase the adoption of digital payments, Narasimhan said.
The nod comes after the RBI recently rejected Paytm Payments Services Limited’s application and asked the company to reapply.
In the last three months, several fintech players, including Open, Infibeam, and Cashfree, got the nod for the payment aggregator licence.
A payment aggregator provides payment services to merchants and e-commerce sites by accepting payment instruments from customers. They pool the funds received from customers and transfer them to merchants after a certain time.
Their services include facilitating integrated payment options such as transactions of cash and cheque and online and offline touchpoints, besides allowing bank transfers for merchants without the need to set up accounts directly with a bank.
In a new set of guidelines in March 2020, the RBI said all payment aggregators (PA) have to be authorised by it.
The RBI instructed non-bank companies offering PA services to apply for authorisation by June 30, 2021. The deadline was later extended to September 30, 2021.
The decision to grant the licence comes after a period of assessment of the application. All payment gateways have to acquire a licence to continue.
The few firms authorised to operate as payment aggregators will come under the direct purview of the RBI. Over 185 fintech firms and start-ups submitted applications for a PA licence.