Innoviti wins RBI approval for payment aggregator license

Innovation Payment The decisions received “principle approval” from Reserve Bank of India (RBI) to serve as payment aggregatorSeveral sources told ET.

Earlier this month, three other payment service providers – Razorpay, Stripe and Pine Labs – were among the first to receive RBI approval for a payment aggregator license, ET
reported July 8.

Fintech startup 1Pay Mobileware, which operates at the intersection of logistics and payments, has also received approval from the central bank to work as a payment aggregator.

The RBI is expected to release a full list of approved firms shortly.

At least 185 fintech companies, including well-known companies such as Cred, Razorpay and PhonePe, have applied for a license.
reported earlier.

Innoviti did not respond to ET inquiries until Monday.

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Founded in 2002, Innoviti provides high-tech payment solutions and merchant terminals for businesses and offline merchants. It also helps equip these retailers with billing and customer relationship management software, and provides payment gateway services to online merchants.

The Payment Aggregator Framework, formally unveiled in March 2020, requires that only RBI-approved firms be able to purchase and offer payment services to merchants.

Over the past few months, RBI has been making presentations to payment gateway vendors and other fintech firms that have applied for a license. However, according to ET sources, the company has been rigorously evaluating these applications.

reported April 23that some online gateways and fintech payment firms applying for a license have been scrutinized for issues related to know-your-customer (KYC) principles and past transactions with cryptocurrency exchanges, as well as gaming applications.

According to sources, the banking regulator has also decided to reject the license of payment aggregator Zaakpay, the payment gateway of MobiKwik.

If the application is rejected, merchants have about three months to stop using the payment gateway service.

Innoviti recently raised an additional $25 million led by Singapore-based Panthera Growth Partners. New investors also participated in the funding round, including Alumni Ventures, Patni Family Office, as well as existing investors FMO and Bessemer Venture Partners.

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