“Securing the Payment Aggregator (PA) license from the RBI is a pivotal moment for Cashfree Payments, affirming our focus on compliance and highlighting the significance of a well-regulated payments landscape,” a Cashfree spokesperson said. “We are now onboarding new merchants on our payment gateway.”
“Razorpay has received the final authorisation from the RBI to operate as a Payment Aggregator under the Payment Settlements Act, 2007. Having received the new PA license, we now restart onboarding new customers and are committed to serving them with our industry-first payment solutions,” said a Razorpay spokesperson.
With the final licence in hand, merchant onboarding opens up for both startups. These companies were unable to sign up new customers for over a year as the RBI had placed an embargo on them.
The development comes as a major respite for payment companies who were facing intense competition in the online merchant payments space from the likes of PhonePe, Juspay and others, who were allowed new merchant onboarding.
Also read | PhonePe targets more merchant revenue from payment gateway business
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ET wrote on December 4 about how these payment companies were building alternate business models to ensure that their toplines were not impacted by the embargo.However, the RBI was conducting multi-level checks to ensure that it selects the right companies for final approval to operate as a payment aggregator.
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