How Zoho Get License To Online Payment Aggregator Following Zomato?Sophia Loren (Author) Published Date : Feb 10, 2024 10:54 IST
In a significant development for India's financial technology landscape, Juspay and Decentro, alongside software-as-a-service (SaaS) company Zoho, have been granted final authorization by the Reserve Bank of India (RBI) to operate as payment aggregators. The approvals, received on February 6, mark a pivotal moment for these entities, positioning them among the select few entrusted with facilitating payment services in the country.
What is a Payment Aggregator?
A payment aggregator, often abbreviated as PA, is a financial entity that facilitates online payment transactions between customers and merchants. It acts as an intermediary, consolidating payments from various customers and directing them to the respective merchants.
Payment aggregators enable companies to offer payment services to merchants, including online businesses and e-commerce firms. They achieve this by accepting various customer payment instruments and pooling the received funds, which are transferred to merchants within specified timeframes.
ZOHO - RBI Nod To Operate As Payment Aggregators:
Joining the esteemed ranks of Stripe, Zomato, and Tata Pay, who secured approval in January, as well as established fintech leaders like Razorpay and Cashfree, which obtained licenses last year, Juspay, Decentro, and Zoho now hold coveted positions in India's growing payments ecosystem rapidly.
In this situation, Juspay operates as a comprehensive payment gateway, facilitating transactions across card, wallet, and UPI platforms. Zoho's attainment of the payment aggregator license underscores its significance as a leading enterprise SaaS player. Zoho is the first enterprise SaaS company to secure this nod from the RBI, highlighting its commitment to innovation and standards.
The RBI's cautious approach to granting payment aggregator licenses, characterized by strict criteria, reflects the regulator's commitment to ensuring the integrity and stability of India's financial ecosystem.
Following this, Zoho's achievement in securing the payment aggregator license on February 2 underscores its dedication to excellence and positions it at the forefront of India's rapidly evolving fintech landscape.