Mobikwik’s Zaakpay Gets RBI Nod for Payment Aggregator Operations

Mobikwik’s payment gateway subsidiary, Zaakpay, has received preliminary approval from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA). This green light allows Zaakpay to onboard new merchants, expanding its operational capabilities.

Upasana Taku, the COO and co-founder of MobiKwik, expressed their eagerness to assist more businesses and strengthen MobiKwik’s position. Taku stated, “The opportunity to support more businesses motivates us to continuously improve our platform. This development reaffirms our commitment to transforming MobiKwik into a comprehensive digital banking services platform.”

It’s worth noting that this preliminary approval comes after a two-year journey following Mobikwik’s initial application to the RBI. In 2021, Mobikwik applied for the PA license for Zaakpay, but their request was initially denied. Undeterred, the company reapplied in October 2022 and eventually gained the RBI’s approval.

The timing of this development is significant, as many of India’s leading payment gateway companies are awaiting RBI approval to onboard new merchants. In December 2022, Fintech unicorn Razorpay, a prominent payment gateway in India, temporarily suspended the onboarding of new online merchants due to communication from the RBI. This highlights the evolving regulatory landscape for payment gateways and the ongoing efforts to streamline and enhance financial services in India.

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