On Tuesday, digital payment pioneers Razorpay and Cashfree disclosed their attainment of final authorization from the Reserve Bank of India (RBI) to operate as payments aggregators (PAs).
"Exciting news! Razorpay has obtained the final authorization from the Reserve Bank of India @RBI to function as a Payment Aggregator (PA) as per the Payment Settlements Act, 2007. We're proud to be among the initial Payment Gateways to secure the final PA license from RBI," Razorpay shared on X.
Cashfree echoed this achievement on X, stating, "We've secured the final authorization from RBI to operate as a payment aggregator. Delighted to announce that Cashfree Payment Gateway is now open for business onboarding."
Neobanking fintech Open also joins the list of recipients, having received the RBI's final approval to operate as a payment aggregator.
This development follows a year-long restriction by the RBI, preventing entities like Razorpay, Cashfree, and Stripe from onboarding new merchants until securing final approval for a PA license.
Payment aggregators (PAs) serve as intermediaries, enabling e-commerce platforms and merchants to accept a variety of payment methods from customers for fulfilling their financial obligations without requiring merchants to develop their own payment systems. PAs collect payments from customers, consolidate them, and subsequently remit them to merchants, streamlining the payment process.
(With Agency Inputs)
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