Amazon Pay, the financial technology arm of e-commerce giant Amazon, has reached a significant milestone in its operations by winning the esteemed Payment Aggregator (PA) license from the Reserve Bank of India (RBI).
The regulatory approval granted on February 20th allows the payment platform to act as a payment aggregator and facilitate e-commerce through its applications.
The announcement comes amid a flurry of license approvals, with 10 companies receiving coveted licenses starting in early 2024. Acquirers include well-known companies such as food aggregators Zomato, Juspay, Decentro, Mswipe, Zoho and Stripe, underscoring the company’s rapid growth. Advances in fintech innovation in India.
A payment aggregator license allows a company to act as an intermediary between a merchant and a payment processor or bank. Essentially, an aggregator can accept payments on behalf of multiple sellers, consolidate them, and distribute the funds to each seller. This model is often used by companies that operate online marketplaces or platforms where multiple sellers offer goods and services. Licensing ensures compliance with laws and regulations and typically involves meeting certain financial and security standards set by relevant authorities.
In addition to the PA license, Amazon Pay already has a prepaid payment instrument (PPI) license, which allows it to operate wallet services including Amazon Pay Balance: Money, as outlined in the RBI document. Become.
An Amazon Pay spokesperson expressed their commitment to improving the user experience, saying, “We remain committed to simplifying the lives of our merchants and customers and realizing their aspirations. The license will allow us to further strengthen our distribution channels and provide innovative solutions to our sellers and customers around the world.” We offer a secure, convenient and valuable digital payment experience in India. ”
