Amazon Pay Secures RBI Payment Aggregator License
- ByStartupStory | February 27, 2024
Amazon Pay, the financial technology arm of e-commerce behemoth Amazon, proudly announces the acquisition of the esteemed Payment Aggregator (PA) license from the Reserve Bank of India (RBI). This regulatory nod, received on February 20, marks a pivotal moment in the company’s operations, granting it the authority to function as a payment aggregator and streamline e-commerce transactions through its application.
This milestone coincides with a surge in licensing approvals, with 10 companies, including industry giants like Zomato, Juspay, Decentro, Mswipe, Zoho, and Stripe, securing the coveted license in the early months of 2024. This trend underscores the flourishing landscape of fintech innovation in India.
A Payment Aggregator license enables a company to serve as an intermediary between merchants and payment processors or banks. Essentially, it empowers the aggregator to accept payments on behalf of multiple merchants, consolidate them, and subsequently distribute the funds to the respective merchants. This model is particularly relevant for businesses operating online marketplaces or platforms with multiple sellers, ensuring regulatory compliance and adherence to financial and security standards set by relevant authorities.
Apart from the PA license, Amazon Pay already holds a Prepaid Payment Instruments (PPI) license, allowing it to operate wallet services, including Amazon Pay balance: Money, in accordance with RBI documentation.
In a statement, an Amazon Pay spokesperson emphasized their commitment to enhancing user experiences, stating, “We remain committed to simplifying lives and fulfilling aspirations of merchants and customers. This (license) allows us to further strengthen our distribution channels and deliver innovative solutions for our merchants and customers across India, providing them with secure, convenient, and rewarding digital payment experiences.”
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