Amazon Pay, the financial technology division of the e-commerce giant Amazon, has recently secured the highly sought-after payment aggregator (PA) licence from the Reserve Bank of India (RBI).
On February 20, the regulator approved the payments app to operate as a payment aggregator, enabling it to facilitate e-commerce transactions through its platform.
“We remain committed to simplify lives and fulfil the aspirations of merchants and customers. This (licence) allows us to further strengthen our distribution channels and deliver innovative solutions for our merchants and customers across India providing them with secure, convenient, and rewarding digital payment experiences,” said Amazon Pay spokesperson.
The company already possesses a Prepaid Payment Instruments (PPI) licence, allowing it to offer wallet services such as Amazon Pay balance: Money.
Since the commencement of 2024, licences have been issued to a total of 10 companies. These include prominent names such as food aggregator Zomato, Juspay, Decentro, Mswipe, Zoho, Stripe, and others.
A payment aggregator licence authorises companies to offer payment services to merchants (including online businesses or e-commerce firms) by accepting payment instruments from customers.
As part of their operations, payment aggregators aggregate funds received from customers and subsequently transfer them to merchants within a specified time frame.
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