SabPaisa, a payment solutions provider, announced on June 19 that it has received final approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA) under the Payments and Settlement Systems Act, 2007. Established in 2016, SabPaisa specialises in payments, payment gateway solutions, and products such as payouts and subscriptions.
In recent months, several payment companies and large merchant entities, including Razorpay, Cashfree, PayU, Amazon Pay, Google Pay, Tata Pay, Zomato, Policybazaar, Jio, EnKash, Cred, Groww, and Worldline, have also obtained PA licenses from the RBI.
PA firms are entities that enable e-commerce sites and online merchants to accept various instruments from customers to complete their payment obligations without the need for the merchants to create their systems. PAs get payments from customers, pool and transfer them to the merchants.
Also read: What is behind the race for payment aggregator licences?
A firm applying for a PA license should have had a net worth of Rs 15 crore at the end of March 31, 2021 and Rs 25 crore at the end of March 31, 2023. According to the RBI, the agreements between PAs, merchants, acquiring banks, and all other stakeholders shall delineate the roles and responsibilities of the involved parties in sorting/ handling complaints, refunds, failed transactions, return policy, customer grievance redressal (including turnaround time for resolving queries), dispute resolution mechanism and reconciliation, among other things.
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