Chennai-based fintech company Paysharp receives final approval from RBI to act as a payment aggregator
The startup, founded in 2019, has raised INR 23 crore in two funding rounds, with the latest valuation at INR 200 crore
Paysharp offers flat-rate pricing for merchants, focusing on non-card-based payments like UPI and virtual account solutions
The Chennai-based fintech startup has received final approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator (PA).
The company said in a statement that it received the final approval last month, after obtaining a license in principle in December 2022.
With the final approval from the RBI, Paysharp can now onboard merchants and process payments under India’s official payment system.
Paysharp, founded in 2019, caters to various sectors including government, B2B, NBFCs and SMEs and is now expanding into the e-commerce 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, Paysharp said, “It is a great pride to be a part of the Indian payment system. We understand the value and responsibility of authorization, we will continue to provide simple and secure payments to businesses at a flat rate, an alternative to percentage-based pricing.”
RBI to expedite PA license applications since December 2023.
In June, Aurionpro And Hitachi Payment Services Receives Approvals to function as personal assistants. Hitachi Payment claims to process more than 2.5 billion digital transactions per year for leading banks and fintechs. Other recent beneficiaries include Growth, Amazon Pay, JusPayStripe, Tata Payments and Mswipe.
The GST Council may consider impose 18% GST on PAs for transactions up to INR 2,000 made through debit and credit cards. This move could impact several fintech startups holding PA licenses, potentially increasing their operational costs. The Indian payment gateway market is expected to reach $2.66 billion by 2029.