Razorpay Gets Payment Aggregator Licence From RBI
Razorpay, India’s preferred payments and banking platform for businesses has announced that it is one of the first full-stack financial solutions companies that has been given an in-principle approval by the ̉RBI for a Payment Aggregator (PA) License. This reiterates the trust placed by over eight million businesses in Razorpay to boost and support their business growth and endorse Razorpay as India’s preferred full-stack financial platform.
In order to ensure safety of merchants and consumers, the RBI issued a payment aggregator framework in March 2020 stating that payment gateways will be mandated to have a license in order to acquire merchants and provide them with digital payments acceptance solutions. Under RBI’s strict evaluation process, more than 185 fintech enterprises and start-ups submitted their proposals for a payment aggregator license.
The few firms authorised to operate as payment aggregators in India will come under the direct purview of the RBI. As a company that has always adhered to regulatory governance while innovating toward building the financial backbone for Indian businesses, Razorpay was a leading contender for a payment aggregator license.
Commenting on becoming one of the first players to receive the payment aggregator license from the RBI, Harshil Mathur, CEO and Co-founder of Razorpay, said, “We are really excited to have received our Payment Aggregator License. We at Razorpay, recognise that we have a responsibility to innovate by not just looking at the future but taking analogies from the past, and strengthening the financial ecosystem of tomorrow, so that millions of businesses, small and big can flourish. This event only further strengthens our commitment to never stop reinventing. We want to create new products and build experiences that will change the lives of millions of businesses and consumers.”
He added, “With the digital payments space coming under direct RBI regulation, we can expect to not only see an immense upsurge in online payment adoption and trust but also witness a magnified surge in digital payment innovations in the coming years. With this trust placed in us, we will continue building the financial backbone for businesses in India, one that is more cashless, more frictionless, more secure, and more connected.”
With a sharp focus on product innovation that is designed to empower and enable uncontrolled growth for small businesses, Razorpay, today, has become the fastest-growing fintech in India. The payment aggregator license will now help Razorpay further its vision of making digital payments easily accessible for all Indian businesses.
Razorpay, a full-stack financial services company helps Indian businesses with comprehensive and innovative solutions built over robust technology to address the entire length and breadth of the payment and banking journey for any business. Established in 2014, the company provides technology payment solutions to over 8mn businesses. Founded by alumni of IIT Roorkee, Shashank Kumar and Harshil Mathur, Razorpay is the second Indian company to be a part of Silicon Valley’s largest tech accelerator, Y Combinator. Marquee investors such as Lone Pine Capital, Alkeon Capital, TCV, GIC, Tiger Global, Sequoia Capital India, Ribbit Capital, Matrix Partners, Salesforce Ventures, Y Combinator and MasterCard have invested a total of USD 741.5 Mn through Series A, B, C, D, E & F funding. A few angel investors have also invested in Razorpay’s mission to simplify payments and banking and redefine how finance works in India.