Amazon Pay Receives Final RBI Approval as Payment Aggregator

Amazon Pay, the fintech arm of Amazon India, has secured a payment aggregator license from the Reserve Bank of India (RBI), joining a select group of authorized organizations in the country.

Strengthened Distribution Channels

• The approval allows Amazon Pay to bolster its distribution channels, facilitating the delivery of secure, convenient, and rewarding digital payment experiences.
• This development aligns with Amazon Pay’s mission to serve merchants and customers across India effectively.

Recent Approvals by RBI

• In addition to Amazon Pay, Decentro, Juspay, and Zoho have also been granted final approval for payment aggregator licenses by the RBI this month.
• Previously, Zomato, Stripe, Tata Pay, Razorpay, Cashfree Payments, and EnKash received similar licenses, highlighting the growing ecosystem of fintech businesses in India.

Role and Function of Payment Aggregators

• Payment aggregators enable e-commerce platforms and merchants to accept multiple payment instruments from customers without the need for merchants to develop their own payment integration systems.
• They facilitate the connection between retailers and acquirers, managing client payments, pooling them, and transmitting them to merchants within a specified timeframe, as defined by the RBI.