Amazon Pay, the financial technology arm of the world's largest online retailer, has obtained the prestigious payment aggregator (PA) license from the Reserve Bank of India (RBI). The payments platform is able to operate as a payment aggregator owing to the regulatory license that it received on February 20. This allows it to enable e-commerce transactions using its application.
This statement coincides with a surge in license approvals, with ten firms obtaining the desired license since 2024 began. Prominent organizations including food aggregators Zomato, Juspay, Decentro, Mswipe, Zoho, and Stripe are among the awardees, demonstrating the developing financial innovation scene in India.
A business that holds a payment aggregator license is able to act as a middleman between banks or payment processors and retailers, giving the aggregator the ability to receive payments on behalf of several businesses, combine them, and then give the money to the appropriate merchants. Businesses that run online marketplaces or platforms where several merchants provide products or services frequently employ this strategy. The license guarantees adherence to regulations and usually entails fulfilling specific financial and security requirements established by pertinent authorities.
Amazon Pay already possesses a Prepaid Payment Instruments (PPI) license in addition to the PA license, which allows it to run its wallet services, such as Amazon Pay balance: Money, in accordance with RBI regulation.
A representative for Amazon Pay expressed commitment to improving user experiences and said they are still focused on making life easier and realizing the goals of both customers and businesses. With the help of this license, it will be able to improve the distribution networks and offer cutting-edge solutions that will make digital payments safe, practical, and fulfilling for customers and merchants all throughout India.
