Amazon Pay gets final approval from RBI to expand its fintech reach

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Amazon Pay gets final approval from RBI to expand its fintech reach

Amazon Pay, the finance technology division of e-commerce giant Amazon, has received the final approval to engage in online payments in India – a payment aggregator license from the Reserve Bank of India (RBI). This is an important milestone for Amazon in India Facilitating e-commerce transactions,
application.

Regulatory approval was granted on February 20, empowering Amazon Pay to facilitate 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 merchant platforms and customers, completing the online transaction process through a single integration. For customers, it simplifies the payment process, and can offer multiple payment options like credit cards, digital wallets, bank transfers, etc.

This model is particularly relevant to running a business online market Where multiple sellers provide goods or services.

This announcement is in line with the broader trend of licensing approvals across the FinTech landscape in India, highlighting the innovative and rapidly growing FinTech environment in the Indian economy.

Recently 10 other companies have also obtained payment aggregator license from RBI. Some of the companies that got the final approval from RBI are- Zomato, Jaspay, Decentro, Mswipe, Zoho, Stripe etc. Licensing ensures regulatory compliance by enforcing specific financial and security standards set by the relevant authorities.

According to the RBI website, the e-commerce giant already has prepaid payment instruments for its Amazon Pay, i.e. Amazon Pay balance, money gift cards and vouchers. With a dual licensing structure encompassing PA and PPI, Amazon’s financial arm is set to provide a comprehensive infrastructure of digital payment solutions by providing secure and convenient financial services to both merchants and customers.

According to reports, in December 2023, the RBI had lifted the one-year ban on payment aggregator licenses for six companies, including online payment platforms like Razorpay and Cashfree Payments. It joins the list of other major online payments giants that had received RBI approval, including Google Pay, Open Securities, EnKash and Paymate India.

The report said that Paytm and PayU India are still awaiting their final approval.