RBI Grants Payment Aggregator License to Amazon Pay in India

RBI Grants Payment Aggregator License to Amazon Pay in India

by February 28, 2024

Amazon Pay has been granted a payment aggregator (PA) license by the Reserve Bank of India (RBI), marking a pivotal milestone for the digital payments arm of the e-commerce firm, Amazon India.

This approval by RBI is not the first for Amazon Pay in India, having secured a prepaid payment instrument (PPI) license previously, enabling it to facilitate a broad spectrum of digital and UPI payments for consumers.

This new license positions Amazon Pay alongside entities such as Zomato, Google Pay, and Zoho, empowering it to offer comprehensive online merchant payment solutions.

An Amazon Pay spokesperson, in a conversation with The Economic Times, said, “We are excited and thankful to receive the final authorisation from the Reserve Bank of India (RBI) to function as a Payment Aggregator. We remain committed to simplify lives and fulfill the aspirations of merchants and customers.”

This is particularly strategic for the e-commerce juggernaut, given its expansive online retail footprint in India.

“This allows us to further strengthen our distribution channels and deliver innovative solutions for our merchants and customers across India providing them with secure, convenient, and rewarding digital payment experiences,”

the spokesperson added, highlighting the potential for Amazon to enhance its service offerings to both e-commerce sellers and direct-to-consumer brands.

With RBI data revealing that as of January 2024, Amazon Pay had issued over 6.6 crore wallets, leading to more than 40 lakh transactions within the month, the new PA license is set to significantly bolster Amazon’s merchant payments domain.

The RBI commenced the issuance of final PA licenses in December 2023, with major payment players like Razorpay, Cashfree, MSwipe, and Juspay also securing their licenses.

 

Featured image credit: Edited from Freepik