RBI gives licenses for 32 payment aggregators
Payment Aggregator is a third-party payment solution provider. For instance, you use YONO SBI to shop on Amazon. Therefore, SBI is an online payment aggregator. Recently, RBI issued licenses to 32 payment aggregators to serve as online payment aggregators. This includes Google, Computer Age, Amazon, NSDL, World Line, Reliance, Zomato, Innnoviti, etc. Applications of 18 more are pending. The pending applications were from Phone Pe, Bharti Pay, Unimoni, Adyen, etc.
How does the Payment Aggregator work?
The payment aggregator acts as an intermediary. Say you are purchasing in a shopping mall, ABC shop. You swipe your debit card or pay using the mobile app XYZ. Now XYZ collects money from your account and deposits it in the account of ABC shop. XYZ is the payment aggregator.
There are two different types of payment aggregators. One is the third-party payment aggregator and bank payment aggregator. RBI recently issued licenses to third-party aggregators.
Is the payment aggregator the same as the payment gateway?
No. They look like they are doing the same job. However, there are many differences between them. A payment aggregator handles funds. On the other hand, the payment gateway provides technology.
Tags: online payment • online payment aggregator • payment aggregator • RBI
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