Amazon Pay announced on Monday that it has obtained a payment aggregator license from the Reserve Bank of India (RBI). This authorization places the fintech company among the recent recipients of licenses granted by the central bank to operate as payment aggregators (PA).
Expressing gratitude for the authorization from the RBI, an Amazon Pay spokesperson stated, “We are excited and thankful to receive the final authorization from the Reserve Bank of India (RBI) to function as a payment aggregator. We remain committed to simplifying lives and fulfilling the aspirations of merchants and customers.” The company emphasized that this regulatory approval would enable it to enhance its distribution channels.
“This 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,” the spokesperson added.
In addition to Amazon Pay, other entities that recently obtained final authorization from the RBI for payment aggregator licenses include fintech startups Decentro and Juspay, and enterprise software-as-a-service (SaaS) firm Zoho.
Previously, in January, companies such as food delivery giant Zomato, and fintech firms Stripe and Tata Pay were among those granted the license. They joined earlier recipients like Razorpay, Cashfree Payments, and EnKash, who received approval last year. Payment aggregators, as defined by the RBI, facilitate e-commerce platforms and merchants in accepting various payment instruments from customers without requiring merchants to establish their payment integration systems.
These intermediaries enable merchants to connect with acquirers, allowing them to receive payments from customers, pool them, and transfer them to the merchants after a specified period, according to the regulator.