Juspay and Zoho receive RBI nod for payment aggregation services
- ByStartupStory | February 7, 2024
The Reserve Bank of India (RBI) has granted approval to Juspay, Zoho, and Decentro to operate as payment aggregators, facilitating ecommerce transactions as intermediaries between customers and merchants, according to an RBI notification.
Zomato was the most recent company to receive a payment aggregator license from the RBI. Enkash, Razorpay, Tata Pay, and Open have also been granted approval by the regulator to function as payment aggregators.
The RBI has taken proactive steps to regulate digital banking platforms, aiming to safeguard customers, curb unethical recovery practices, and enhance financial security.
As per the payment aggregation license, companies can facilitate online payments on ecommerce platforms using various payment methods, including credit and debit cards, bank transfers, and e-wallets.
According to the RBI notification, “The license mandates several guardrails to be put into place to prevent fraudulent transactions, reduce the risk of chargebacks, and avoid other payment disputes.”
Juspay, founded by Vimal and Ramanathan RV, is a payments infrastructure company serving businesses and merchants. It offers products like Juspay Safe for OTP auto-read and authentication, HyperSDK for customizable native payment experiences, and Express Checkout, which enables multiple payment options and smart routing systems to enhance transaction success rates.
Decentro, backed by Y Combinator, is a fintech company that assists companies in efficiently managing their banking, payments, and fintech workflows.
“The license approval allows us to play a crucial role in facilitating secure and seamless payment transactions for our customers,” stated a spokesperson from Juspay.
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