Paytm and PayU barred from operating as payment aggregators
Paytm and PayU still continue to be under embargo as they are still barred by the Reserve Bank of India (RBI) to operate as payment aggregators. These payment startups are therefore said to be building alternate business models to ensure that their revenues remain unaffected.
Meanwhile, payment startups Razorpay and Cashfree have reportedly received the final approval. The approval comes after nearly a year-long embargo, paving the way for them to add new merchants and accelerate growth. The RBI nod brings these payment companies within the regulatory fold of the central bank for the first time.
Spokespeople at Cashfree and Razorpay have confirmed the development and said that they are open to onboarding fresh merchants.
Others that have reportedly received the approval include Google for Google Pay, Mumbai-based expense management platform Enkash, payment gateway company Payments and Bengaluru-based neo banking startup Open Financial.
However, the RBI was conducting multi-level checks to ensure that it selects the right companies for final approval to operate as a payment aggregator. According to industry insiders some six to seven applicants would have received the final nod from the RBI, though exact number is not known.
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