27 February,2024 12:53 PM IST | Mumbai | mid-day online correspondent
Amazon. Pic/ X
E-commerce giant Amazon's finance technology division, Amazon Pay has received a final approval for engaging in online payments in India - a license of Payment Aggregator from the Reserve Bank of India (RBI). It is a significant milestone for Amazon in India to facilitate e-commerce transactions.
application.
The regulatory approval was granted on February 20, empowering Amazon Pay in facilitating e-commerce transactions through its application. Amazon Pay is one of the most used online payment platform used in India.
Payment aggregators act as intermediaries between business platforms and customers, bridging the process of online transactions through a single integration. For customers, it simplifies the payment process, and can offer several payment options like credit card, digital wallets, bank transfer etc.
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This model is particularly relevant for businesses running online marketplaces where numerous sellers offer goods or services.
The announcement aligns with a broader trend of licensing approvals in the fintech landscape in India, highlighting the innovative and rapidly growing fintech environment in Indian economy.
Recently, 10 other companies have also secured the Payment Aggregator license by RBI. Some of the companies which got the final approval from RBI are- Zomato, Juspay, Decentro, Mswipe, Zoho, Stripe etc. The license ensures regulatory compliance by imposing specific financial and security standards set by relevant authorities.
As per RBI's website, the e-commerce giant already has a prepaid payment instrument for its Amazon Pay, i.e the Amazon Pay balance, Money gift cards and vouchers. With a dual license structure encompassing PA and PPI, the financial arm of Amazon is set to offer a comprehensive structure of digital payment solutions by providing secure and convenient financial services for both merchants and customers.
As per reports, in December 2023, RBI had lifted a year-long ban on payment aggregator licenses for six companies, including online payment platforms like such as RazorPay and Cashfree Payments. It joined the list of other leading online payment giants which had got RBI approval including, Google Pay, Open Financial, EnKash, and Paymate India.
While, Paytm and PayU India are still awaiting their final approvals, reports say.
