Paysharp Gets Payment Aggregator Nod From RBI

Chennai-based fintech startup, Paysharp has received final authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator (PA).

The company said in a statement that it has secured this final approval last month, after being granted in-principle licence in December 2022.

With the RBI’s final authorization, Paysharp can now onboard merchants and process payments as part of India’s official payment system. 

Paysharp, founded in 2019, caters to various sectors, including government, B2B, NBFC and SMBs and is now expanding into the ecommerce segment. 

The company focuses on non-card-based payments, including UPI and virtual account-based solutions for NEFT, IMPS, and RTGS collections. Its product portfolio includes Link Payment and Payment Pages powered by UPI.

Krishna Kumar Mani, founder and CEO of Paysharp, said, “It is great pride to be a part of India’s Payment system. We understand the value and responsibility of the authorization, we will continue to provide simple and safe payments to businesses at a flat price alternative to percentage based pricing.”

The RBI has been approving PA licence applications rapidly since December 2023. 

In June, Aurionpro and Hitachi Payment Services received nods to operate as PAs. Hitachi Payment claims to process over 2.5 Bn digital transactions annually for leading banks and fintechs. Other recent recipients include Groww, Amazon Pay, JusPay, Stripe, Tata Payments, and Mswipe. 

The GST Council may consider imposing 18% GST on PAs for transactions up to INR 2,000 made via debit and credit cards. This move could affect multiple fintech startups with PA licenses, potentially increasing their operational costs. The Indian payment gateway market is projected to reach $2.66 Bn by 2029.