Financial Services News

Fintech platform Mswipe receives in-principle approval from RBI for payment aggregator licence

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Mswipe logo

Photo : ANI

Mumbai: Financial services platform Mswipe Technologies received in-principle approval from the Reserve Bank of India (RBI) for a payment aggregator (PA) licence. The development was confirmed by the company on Tuesday.
At present, Mswipe outsources transaction settlements. After the approval, Mswipe, which provides a point of sales (PoS) solution, will be able to develop an in-house online payment gateway. Notably, the financial services platform helps businesses with digital payments.

“MSMEs are the backbone of the Indian business ecosystem, and the PA License will enable us to provide them with simpler, affordable and integrated digital payment solutions,” Mswipe CEO Ketan Patel said as quoted by IANS.

Also Read: Indian digital payments industry to grow over 3-folds to $10 trn by 2026: Report

Patel also said that Mswipe would concentrate on expanding and reaching out to more MSMEs by offering them all the options, including PoS terminals, QR-code payments, boombox (payment soundbox), payment gateways, and even lending solutions.

Maswipe began operation in 2011. The company is headquartered in Mumbai. In 2020, the RBI issued a payment aggregator framework. As per the central bank, payment gateways will be mandated to have a license in order to acquire merchants and provide them with digital payment acceptance solutions. Over 185 fintech enterprises and startups submitted their applications for a payment aggregator license. Many of these applications were rejected by the RBI. These entities can apply afresh meeting prescribed criteria set by the RBI.

Payment aggregators are a third-party entity which is responsible for managing and processing online transactions of merchants. These aggregators facilitate e-commerce sites and merchants to accept digital payments from customers.

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