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RBI Allows Innoviti Payment Solutions to Operate as Payment Aggregator

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The Reserve Bank of India (RBI) grants ‘in-principle’ approval to fintech company, Innoviti Payment Solutions to function as payment aggregator.

Innoviti, a company founded in 2002, offers point-of-sale terminals and technology-driven payment solutions to companies and offline retailers. Additionally, it aids in providing these stores with invoicing and CRM software and offers payment gateway services to online retailers.

Panthera Growth Partners of Singapore spearheaded a $25 million fundraising effort for Innoviti recently. The investment round included participation from both new investors, such as Alumni Ventures and Patni Family Office, as well as current investors FMO and Bessemer Venture Partners.

Only companies recognized by the RBI are permitted to purchase and provide payment services to merchants under the terms of the payment aggregator framework, which was formally implemented in March 2020.

RBI is expected to release a full list of companies that were granted approvals.

Presentations with payment gateway providers and other fintech companies that have filed for the license have been held by RBI over the previous few months. But it has been stringent in how it assesses these applications.

RBI also made the decision to deny Zaakpay, a MobiKwik payment gateway, a license to act as a payment aggregator.

Merchants have around three months to quit using a payment gateway's service if an application is rejected.

According to reports, three additional payment service companies - Razorpay, Stripe, and Pine Labs - were among the first to get RBI approval for their application for a payment aggregator license earlier this month.

The central bank has also given the fintech company 1Pay Mobileware permission to function as a payment aggregator. 1Pay Mobileware integrates payments and logistics.

RBI is expected to release a full list of companies that were granted approvals.

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