MobiKwik’s payment gateway arm Zaakpay has received in-principle authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA). This will allow Zaakpay to onboard new merchants onto its platform for online payment processing.
The RBI’s in-principle nod is a significant milestone for Zaakpay, as it will allow the company to expand its reach and offer its services to a wider range of merchants. Zaakpay already works with a number of brands in sectors such as e-commerce, mobility, and bill payments.
The RBI had earlier rejected Zaakpay’s application for a PA license in 2021, but the company had reapplied in October 2022. The RBI’s decision to grant Zaakpay an in-principle nod is a sign that the regulator is confident in the company’s ability to operate as a PA in a safe and secure manner.
The PA license is required by companies that want to aggregate payments from multiple merchants and then transfer the funds to the merchants’ bank accounts. PAs play an important role in the Indian digital payments ecosystem, as they help to make it easier for merchants to accept online payments.
The RBI has been tightening its regulations for PAs in recent months. In August 2022, the regulator issued a set of guidelines for PAs, which include requirements for net worth, capital adequacy, and customer protection.
Zaakpay’s receipt of an in-principle nod from the RBI is a positive development for the company and for the Indian digital payments ecosystem as a whole. It shows that the RBI is committed to supporting the growth of digital payments in the country, while also ensuring that consumers and merchants are protected.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.