Cred can operate as payment aggregator, RBI gives in-principle approval: Report

cred can operate as payment aggregator, rbi gives in-principle approval: report

Cred can operate as payment aggregator, RBI gives in-principle approval: Report

Fintech unicorn CRED has reportedly got an in-principle approval to operate as a payment aggregator after securing a licence from the Reserve Bank of India (RBI). The Bengaluru-headquartered startup, valued at $6.4 billion, once gets the final approval from the central bank will soon companies, such as Razorpay and Cashfree, that already have the licences, TechCrunch reported quoting two sources.

The Peak XV-backed startup runs a credit card bill payment platform for creditworthy customers. Cred’s Cred Pay, in partnership with other payment companies, offers a check-out option to its users on popular e-commerce platforms.

A payment aggregator facilitates online payments for customers and businesses by offering various payment methods like debit cards, credit cards, UPI, and e-wallets. They act as intermediaries to streamline the payment process for their clients.

The RBI introduced the PA framework in March 2020. Acquiring merchants must have a PA license for digital payment solutions. The central bank is actively issuing PA licenses to digital payment players.

Fintech startups need licenses to process payments directly, reduce costs, control payment flow, onboard merchants, and settle funds with merchants. Without licenses, they depend on third-party processors that may not prioritise their needs.

CRED, founded by Kunal Shah in 2018, it is a reward-based credit card payments app. As per industry data for March, Cred was the fourth largest UPI payments application after PhonePe, Google Pay and Paytm. CRED has been actively introducing new products and features like UPI-based P2P payments, scan and pay, CRED escapes, and CRED Flash to boost its revenue. Recently, CRED acquired Kuvera to expand into wealth management.

 

Watch Live TV in English

Watch Live TV in Hindi

News Related

OTHER NEWS

Aliw Awards nominations out

ALIW Awards Foundation Inc. President Alice H. Reyes has released the names of finalists for the 2023 Aliw Awards to be presented on Dec. 11, 2023, at the Manila Hotel ... Read more »

WhatsApp Web gains the feature of single-view photos and videos

WhatsApp Web gains the feature of single-view photos and videos (Photo: Unsplash) The WhatsApp Web, the desktop version of the popular messaging app from Meta, has received an update allowing ... Read more »

Young athletes’ time to shine in Siklab Awards

Young athletes’ time to shine in Siklab Awards MANILA, Philippines — The future heroes of Philippine sports will be honored during the third Siklab Youth Sports Awards on Dec. 4 ... Read more »

Local exec says 5-10 barangays still isolated in Northern Samar

Graphics by Jannielyn Ann Bigtas A local government official said Monday that five to 10 barangays in Northern Samar are still isolated following the massive flooding in the area last ... Read more »

App made by ex-jeepney driver will let you pay PUV fare, book tricycles

DyipPay app lets you pay jeepney fare, book tricycles “Barya lang po sa umaga.” Everyone who rides jeepneys knows this rule: it may not be an actual law, but it’s ... Read more »

Updated In-Season Tournament Bracket ahead of pool play finale

Updated In-Season Tournament Bracket ahead of pool play finale Tuesday will mark the last day of pool play for the inaugural NBA In-Season Tournament. From there, six first-place teams and ... Read more »

PCG forms teams for maritime emergency response

PCG forms teams for maritime emergency response MANILA, Philippines — Recent incidents of fishermen lost in the waters off Southern Tagalog have prompted the Philippine Coast Guard (PCG) to form ... Read more »
Top List in the World