Payment Aggregator
Why it Matters?
The Reserve Bank of India has granted in-principle approval to Paytm Payments Services Ltd. (PPSL), a subsidiary of One 97 Communications Ltd., to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007
What You Should Know?
Payment Aggregator facilitates merchants to accept payments via multiple instruments (cards, UPI, wallets, net banking) without building their own payment infrastructure.
It Operate under the Payment and Settlement Systems Act, 2007 and regulated by RBI.
RBI is the licensing authority for Payment Aggregators.
Only companies incorporated in India are eligible to operate as Payment Aggregators.
Minimum net worth requirement is ₹15 crore at the time of application and ₹25 crore within three years.
There are two types of PA:
Bank Payment Aggregators
Operated by banks
Higher setup and integration costs
Suitable for large corporations; challenging for small businesses.
Third-Party (Non-Bank) Payment Aggregators
Require RBI authorisation under Payment and Settlement Systems Act, 2007.
Handle technological and operational payment processes.
Lower costs, easier integration; ideal for small businesses.
Offer services like sub-merchant onboarding and analytics dashboards.
Features & Benefits of Payment Aggregators
Easy Onboarding – Quick merchant & sub-merchant setup with KYC.
Data Security – Encryption, tokenisation, PCI-DSS & RBI compliance.
Fraud Prevention – Monitoring & detection using ML-based patterns.
Multiple Payment Modes – UPI, cards, Net Banking, wallets, BNPL, EMIs.
Fast Settlements – Instant or same-day fund transfers.
Smooth Checkout – Simple, user-friendly payment process.