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Mobikwik’s Zaakpay gets RBI’s in-principle nod to operate as payment aggregator
- The RBI’s in-principle authorisation will enable Zaakpay to onboard new merchants onto its platform for processing of online
New Delhi: Mobikwik's payment gateway arm Zaakpay has finally received in-principle authorisation from the Reserve Bank of India (RBI) to operate as a payments aggregator.
The in-principle approval comes two years after the Gurugram-based payments company filed its application with the RBI. Mobikwik had applied for the payments aggregator licence in 2021, but was rejected by the regulator. The firm re-applied in October last year.
The RBI’s in-principle authorisation will enable Zaakpay to onboard new merchants onto its platform for processing of online payments.
Earlier, all the companies in the business of processing payments were called ‘payment gateways’. However, the RBI, in its 2020 PAPG guidelines, clarified that 'payments aggregators' will facilitate payments to merchants by handling the money, whereas 'payment gateways' will just offer the technology platform—they won’t get involved in the settlement of funds. And, to operate as a payments aggregator, one needs RBI approval.
Upasana Taku, chairperson, co-founder and COO, MobiKwik, said, “We are happy to welcome new merchants onto the Zaakpay platform and offer them a safe and user-friendly payment gateway. The opportunity to support more businesses inspires us to continuously enhance the capabilities of our platform. This development reinforces our commitment to further develop MobiKwik into a comprehensive digital banking services platform.”
Close to 180 applications were filed, of which 37 applications of existing payment gateway companies, and 23 new firms have received the in-principle nod. About 65 applications have been ‘returned’. According to the RBI, only existing companies, which have received the in-principle nod, can onboard merchants on their platforms.
Currently, the top four payment aggregators Razorpay, PayU, Cashfree, and Paytm are being barred from onboarding new merchants, despite receiving the in-principle approval.
As of now, no company has received a final approval.
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Business NewsCompaniesNewsMobikwik’s Zaakpay gets RBI’s in-principle nod to operate as payment aggregator
First Published:26 Oct 2023, 05:20 PM IST
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