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The Reserve Bank of India (RBI) has lifted the ban on payment aggregators ReservePay and CashFree after almost a year. Both Cashfree and ReservePay have confirmed this. A spokesperson for Cashfree Payments said – Getting the Payment Aggregator (PA) license from the Reserve Bank is a special moment for Cashless Payments. We are now onboarding new merchants to our payment gateway. We are very excited for the new beginning. We will be the leading company in the market. At the same time, a Razorpay spokesperson said that after acquiring the new PA license, we are now starting to add new customers and are committed to serve them better. We welcome this new change.
Last year the ban was: Let us tell you that last year the central bank asked Razorpay, Cashfree, PayU and Paytm to stop adding new merchants till they get the final license. All of them have in-principle approval for payment aggregator licences. However, Paytm and PayU India are still awaiting clarification. “We have resubmitted our application and are awaiting a decision,” Pew India said.
The conversation continued: Last year, the RBI had asked these aggregators to temporarily stop onboarding new online merchants until additional documents were submitted. Since then, the companies have been continuously talking to the regulator. One of the payment aggregator executives said that ReservePay, PayU India and CashFree previously had 70-80% market share in terms of adding new merchant accounts.
Meaning of Payment Aggregators: Actually, payment aggregators are for merchants. These are third party service providers that provide an easy option for merchants to get paid. In simple language, it is a means of payment between the customer and the merchant. However, in this only the merchant can take the payment. Customer can make payment through this only.