CRED, the Bengaluru-based fintech start-up, has recently obtained in-principle approval for a payment aggregator license, as reported by the Economic Times. This significant development allows CRED to broaden its services beyond its focus on reward-based credit card payments. With the new license, CRED can now facilitate merchant payments directly, enhancing its role in the digital payments ecosystem.
Expanding Services with Payment Aggregator License
The acquisition of the payment aggregator license enables CRED to extend its services beyond credit card payments to include merchant transactions. Previously, CRED operated CRED Pay in collaboration with other payment companies, but with this license, it gains the capability to manage fund transfers and settlements independently.
Role of Payment Aggregator in Digital Payments
A payment aggregator acts as a facilitator for online payments, enabling customers and businesses to transact through various channels, including credit cards and UPI. By obtaining the payment aggregator license, CRED can streamline the payment process for both consumers and merchants, eliminating the need for separate integration systems.
RBI’s Approval Process and Industry Landscape
The Reserve Bank of India typically takes six months to grant the payment aggregator license. Recent recipients of this license include notable entities such as CCAvenue, Innoviti Payments, and Razorpay. This development underscores CRED’s commitment to enhancing its offerings and positioning itself as a key player in India’s evolving fintech landscape.
CRED’s Evolution and Services
Initially launched with a focus on assisting users with credit card bill payments, CRED has expanded its services over the past six years to include loan offerings. Notably, CRED provides users with features like credit card spend tracking and management, offering valuable insights into their spending habits and card usage efficiency.