Zoho, Juspay, Decentro Secure RBI Payment Aggregator Approval

February 8, 2024

The Reserve Bank of India has granted final authorization for three more companies – Juspay, Decentro, and Zoho – to operate as payment aggregators in India. This approval allows these companies to provide payment services to online merchants by accepting payments from customers.

Juspay, Decentro, and Zoho Join Growing List

Juspay, Decentro, and Zoho join Stripe, Zomato, and Tata Pay, who received approval in January 2023. Major fintech players like Razorpay and Cashfree received the license in 2022. This makes a total of 8 companies so far that have secured the coveted payments aggregator license from the RBI.

The Importance of a Payments Aggregator License

A payments aggregator license allows companies to offer payment services to online businesses and e-commerce companies. As payment aggregators, these companies can accept payments from customers on behalf of merchants and pool the funds before transferring them to merchants after a set period of time.

Stringent Eligibility Criteria

The RBI has set stringent eligibility criteria for the payments aggregator license. The regulator has taken a cautious approach in granting these licenses.

Some applications have been returned because companies failed to meet all criteria. Instamojo, Paytm Payments Services, and Freecharge had their applications sent back and were asked to stop onboarding new merchants.

Decentro, Juspay, and Zoho’s offerings

Decentro allows neo-banks, marketplaces, and fintechs to integrate banking solutions through its APIs.
Juspay operates as a full-stack payment gateway supporting cards, wallets, and UPI payments.
Zoho is one of the few enterprise SaaS companies to gain a payments aggregator license, giving it a strong position in business software and payments.

Still Awaiting Approval

Some other prominent players still await final approval. Pine Labs, Infibeam, PhonePe, and Easebuzz have received in-principle nods but are yet to get full authorization. Applications for Cred and PayU continue to be processed as of February 2024. The RBI is carefully vetting each applicant to ensure they can meet all regulatory requirements before granting a license.

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