Paysharp, a fintech company, said in a media statement on December 26 that it has got an in-principle authorization from the Reserve Bank of India (RBI) to function as a payment aggregator (PA).

According to Krishna Kumar Mani, cofounder and CEO of Paysharp, “this will allow us to improve the capabilities of our current products and explore novel techniques to automate the financial processes of the nation’s millions of SMEs and small firms.”

Krishna Kumar Mani and Sathish S established Paysharp in 2019 to provide businesses with enterprise-grade virtual account and UPI solutions that can be integrated with their software or mobile applications.

The Chennai-based B2B financial platform offers a full collection solution together with branded UPI handles and customization for all UPI payment modes, including mobile intent, collection requests, and dynamic QR codes.
“In addition to payment gateway services, it is also offering billers solutions to join as BBPS (Bharat bill payment system). Paysharp has achieved success by providing low-cost money transfer, which is ideal for the B2B retail model, according to Mani.

The RBI granted in-principle authorization to Worldline ePayments India, a provider of digital payment processing services, on December 21.

Several fintech companies, including Open, Infibeam, and Cashfree, received approval for the PA licence in the recent three months.

By taking consumer payment instruments, a payment aggregator offers payment services to merchants and e-commerce websites. After a predetermined period of time, they combine the monies collected from clients and transfer them to merchants.

In addition to enabling bank transfers for merchants without the need to open accounts directly with a bank, their services also include facilitating integrated payment methods such as cash and check transactions, as well as online and offline touchpoints.

The RBI stated in a fresh set of regulations released in March 2020 that it must approve all PAs.
Non-bank businesses that provide PA services were told by the RBI to apply for authorization by June 30, 2021. Later, the due date was raised to September 30, 2021. Applications for a PA licence had been submitted by over 185 start-ups and fintech companies. The central bank has direct control over the few businesses that have been granted operating permission.

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