Mswipe Technologies has been granted a Payment Aggregator license by the RBI
- ByStartupStory | February 20, 2024
Mswipe Technologies has secured a payment aggregator (PA) license from the Reserve Bank of India (RBI), joining the ranks of Zomato, Decentro, Zoho, Juspay, and Razorpay. The approval follows nearly two years after the company received an initial nod in mid-2022. “The payment aggregator license underscores the company’s commitment to expanding its range of services while delivering secure, efficient, and user-friendly payment technology,” the company stated on February 19.
A payment aggregator license enables companies to provide payment services to merchants by accepting payment instruments from customers and transferring funds to merchants after a specified period. Mswipe, initially focused on offline payments with point of sale (PoS) devices, aims to enter the online sector with its own gateway, with a particular focus on MSMEs.
Boasting a merchant network exceeding 600,000, Mswipe seeks to diversify its revenue streams through sound box and loan collection services to banks and NBFCs, both launched a year ago. “We have installed over 300,000 sound boxes and aim to reach a million by the end of 2024,” the company stated. In the collection business, it has partnered with 15 entities, experiencing a 20% month-on-month revenue growth.
The fintech firm has temporarily halted merchant lending operations to prioritize its core payments business, intending to function as a digital service provider (DSA) without lending from its own resources, according to co-founder Ketan Patel. Mswipe competes with industry players like Razorpay, PayU, Pine Labs, CCAvenues, BharatPe, BillDesk, as well as newcomers like Paytm and PhonePe in the offline payments domain.
Patel noted that Mswipe, having secured over $107 million from investors including Falcon Edge, Matrix Partners India, B Capital, Epiq Capital, and DSG Growth Partners, has been EBITDA positive since FY22.
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