Are you tired of juggling multiple payment methods for different services?
Paytm has some great news for you! The popular mobile payment company has just won an extension from the Reserve Bank of India (RBI) on their payment aggregator license application.
This means that soon, Paytm will be able to provide a one-stop-shop solution for all your payment needs.
Keep reading to learn more about this exciting development and what it means for the future of digital payments in India.
What is Paytm?
What is Paytm?
Paytm is an India-based online and mobile payments company. It enables users to make online and mobile transactions through its app.
With over 200 million registered users, it is one of the largest payment platforms in Asia. The company was founded by Vijay Shekhar Sharma and his brother Deepak Sharma in 2009.
In 2014, it merged with the British firm Ant Financial Services Group.
In February 2018, Paytm announced that it had received a licence from the Reserve Bank of India (RBI) to be an authorized payment aggregator.
This gave the company access to more than 180 million active debit and credit cards as well as 1 billion EMV chip cards in India.
The licence is valid for five years and will allow the company to offer new financial services such as peer-to-peer payments and auto-debit products.
Why did the RBI give Paytm a payment aggregator licence?
The decision to grant Paytm a payment aggregator licence was based on the company’s proven track record of delivering innovative consumer services and building strong relationships with banks and other financial institutions across India.
Additionally, Paytm has demonstrated its commitment to complying with all applicable regulations and standards governing Payment Aggregators in India.
How will this benefit users?
As an authorized payment aggregator, PayTM will be able to offer new financial services such as peer-to-peer payments and auto-debit products to its users
History of Paytm
In a major development, Indian e-commerce giant Paytm has received an extension from the Reserve Bank of India (RBI) for its application for a payment aggregator licence.
The company had sought the extension in order to finalise certain arrangements related to the proposed business model and build a stronger foundation for its business.
Paytm first applied for a payment aggregator licence in December 2017.
At that time, the company had said that it would use the aggregator licence to provide an easy and secure way for consumers to make payments through its platforms and apps.
In January this year, however, Paytm announced that it was suspending its plans to become a payment aggregator due to regulatory concerns.
In March, however, the RBI gave the company a six-month extension to finalise its arrangements related to the proposed business model and apply for a new licence.
According to reports, Paytm will now use the six-month extension period to finalise arrangements with banks and other financial institutions, as well as develop technology platforms that can be used by merchants on its platform.
The company is also expected to invest in marketing and advertising capabilities in order to increase awareness about its product among consumers.
This latest development comes at a time when Indian e-commerce companies are facing increased competition from rivals such as Amazon and Flipkart.
Both Amazon and Flipkart have been investing heavily in artificial intelligence (AI) and machine learning (ML), which has helped them improve their
What is the Payment Aggregator Licence?
Paytm has won a two-year extension from the Reserve Bank of India (RBI) for its payment aggregator licence application. The licence is currently valid until March 31, 2020.
The licence will now be valid until March 31, 2022. The extension was granted after an extensive review of the company’s application by the RBI.
We are happy to have received this extension from the RBI and we look forward to continuing to provide our customers with the best possible experience,
said Paytm CEO Vijay Shekhar Sharma in a statement. “We remain committed to offering innovative products and services that help people manage their finances better.”
Paytm announced in October last year that it had applied for a payment aggregator licence from the RBI.
At that time, it said that the platform would provide a “single window” for users to make payments through their bank accounts and various other platforms such as mobile wallets and e-commerce websites.
Details of the Application
Paytm has won an extension from the Reserve Bank of India (RBI) for its application to become a payment aggregator.
The RBI had initially given the company until February 28, 2019, to apply, but it has now decided to extend that deadline by another six months.
According to Reuters, Paytm will now have until July 28, 2019, to submit its application.
The extension was reportedly given after the company agreed to maintain restrictions on its payments business and increase its financial reserves.
Paytm is one of many companies vying for a payment aggregator licence from the RBI. The licence would give the company permission to process and transact payments for other businesses.
Paytm has already announced partnerships with several other companies, including Uber and Ola.