Financial services platform
Mswipe Technologies has received approval in principle for a Payment Aggregator (PA) license from the Reserve Bank of India (RBI). The development was confirmed by the company on Tuesday.
Mswipe currently outsources the processing of transactions. Once approved, Mswipe, which offers a point-of-sales (PoS) solution, will be able to develop an internal online payment gateway. In particular, the financial services platform helps businesses with digital payments.
“MSMEs are the backbone of India’s business ecosystem and the PA license will enable us to offer them simpler, more affordable and integrated digital payment solutions,” said Ketan Patel, CEO of Mswipe, as quoted by IANS.
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Patel also said that Mswipe will focus on expanding and reaching more MSMEs by offering them all options including PoS terminals, QR code payments, Boombox (payment sound box), payment gateways and even credit solutions .
Maswipe went live in 2011. The company is headquartered in Mumbai. In 2020, the RBI released a Payment Aggregator Framework. According to the central bank, payment gateways must be licensed to acquire merchants and provide them with digital payment acceptance solutions. Over 185 fintech companies and startups submitted their applications for a payment aggregator license. Many of these applications were rejected by the RBI. These companies can re-apply after meeting the mandatory criteria set by the RBI.
Payment aggregators are a third party responsible for managing and processing merchants’ online transactions. These aggregators enable ecommerce sites and merchants to accept digital payments from customers.