Reserve Bank of India (RBI) has introduced new payment aggregators (PA) and payment gateway (PG) licences to eligible players. Pine Labs, Razorpay and American payments player Stripe have become the first players to receive the license. There were more than 147 companies applied with some famnous names like PhonePe, BharatPe, Razorpay, Cred, Tata Group, Amazon, Reliance Industries, Zomato, PayU, and Pine Labs among others have submitted applications for the license before September 30, 2021
Who are Payment Aggregators ?
A payment aggregator provides payment services for merchants and e-commerce sites by accepting payment instruments from customers. As part of the process, they pool the funds received from customers and transfer them to merchants after a certain time. Also Read – RBI Introduces New Digital PPI for Retails, Grocery Payments
Payment gateways, on the other hand, simply provide technology services to businesses for processing transactions. They do not have any involvement in handling of funds.