Fintech Startup Paysharp Becomes Payment Aggregator, Receives RBI Nod

Paysharp, a Chennai-based fintech firm, has got final approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator (PA).

The company stated in a statement that it received final permission last month after being given an in-principle licence in December 2022.

Krishna Kumar Mani, Paysharp’s founder and CEO, remarked, “It gives me great pride to be a part of India’s payment system. We recognize the importance and responsibility of the authorization, and we will continue to provide businesses simple and secure payments at a flat rate as an alternative to percentage-based pricing.”

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

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Paysharp, founded in 2019, serves a variety of industries, including government, B2B, NBFCs, and SMBs, and is now moving into the ecommerce space.

The company specializes in non-card payments, such as UPI and virtual account solutions for NEFT, IMPS, and RTGS collections. Its product line comprises Link Payment and Payment Pages enabled by UPI.

Since December 2023, the RBI has been rapidly approving PA licensing applications.

In June, Aurionpro and Hitachi Payment Services were approved to operate as PAs. Hitachi Payment claims to conduct more than 2.5 billion digital transactions each year for leading banks and fintechs. Other recent awardees include Groww, Amazon Pay, JusPay, Stripe, Tata Payments, and Mswipe.

The GST Council may consider imposing an 18% GST on PA transactions of up to INR 2,000 conducted using debit and credit cards. This action could have an impact on many finance businesses holding PA licenses, thereby boosting their operational costs. The Indian payment gateway market is expected to generate $2.66 billion by 2029.