In the wake of the Paytm crisis, the Reserve Bank of India (RBI) has authorized Juspay, Zoho, and Decentro to operate as payment aggregators, serving as intermediaries for ecommerce transactions between customers and merchants. This move comes as part of the RBI’s proactive efforts to regulate digital banking platforms and ensure the security of financial transactions.
These companies join the ranks of other approved payment aggregators such as Zomato, Enkash, Razorpay, Tata Pay, and Open, as per the RBI notification. The regulator aims to protect consumers, prevent fraudulent transactions, mitigate risks of chargebacks, and address payment disputes through stringent guidelines imposed on licensed entities.
Under the payment aggregation license, companies can facilitate a range of online payment methods, including credit and debit cards, bank transfers, and e-wallets, on ecommerce platforms. This authorization underscores the importance of enhancing financial security and promoting seamless payment experiences for customers.
Juspay, led by founders Vimal and Ramanathan RV, offers a suite of payment infrastructure solutions designed to streamline transactions and enhance security. Their products include Juspay Safe for OTP auto-read and authentication, HyperSDK for customizable native payment experiences, and Express Checkout for optimizing payment options and routing systems.
Decentro, backed by Y Combinator, specialises in fintech solutions that streamline banking, payments, and financial workflows for businesses.
In response to the license approval, a spokesperson from Juspay expressed their commitment to ensuring secure and seamless payment transactions for their customers, highlighting the pivotal role they play in the digital payments ecosystem.
