Payment Aggregator License Services

Expert support to obtain your RBI Payment Aggregator authorisation in India.
Schedule a Call
Payment Aggregator License in India

What is a Payment Aggregator License?

A Payment Aggregator License allows a company to collect payments from customers on behalf of merchants through cards, UPI, net banking, wallets, and other payment modes, then settle the funds to the merchant after reconciliation. In India, non-bank payment aggregators are regulated by the Reserve Bank of India. In India, non-bank payment aggregators are regulated by the Reserve Bank of India under the Master Direction on Regulation of Payment Aggregators, 2025, which replaced and consolidated earlier rules covering online and cross-border PA operations.

Why a Payment Aggregator License Makes Sense for NBFCs

IMC provides payment aggregator license advisory for NBFCs that want to add merchant payment collection, settlement support, recurring payments, and digital payment processing to their existing financial services model.
Area How It Helps NBFCs
Broader Payment Services NBFCs can add digital payment collection, merchant payments, recurring payments, and settlement support to their existing financial services.
New Revenue Channel Payment processing fees can create an additional income line beyond lending, advisory, and other financial services.
Better Customer Experience Customers can make payments faster through cards, UPI, net banking, wallets, and other digital options, improving day-to-day interactions.
Stronger Regulatory Position A PA license allows NBFCs to operate within RBI’s regulatory framework, which helps build trust with merchants, customers, banks, and business partners.
Deeper Merchant Relationships NBFCs working with SMEs, retailers, startups, or digital businesses can support both financing and payment collection needs under one structure.
Stronger Market Relevance As more businesses move towards digital payments, NBFCs with PA capabilities can remain more useful to their client base.

Types of Payment Aggregators in India

1. Bank-Based Payment Aggregators

Bank-based payment aggregators are operated by banks and are usually preferred by large companies with higher transaction volumes.

2. Third-Party Payment Aggregators

Third-party payment aggregators are independent payment service providers that help merchants accept digital payments through different modes.
Basis Bank-Based Payment Aggregators Third-Party Payment Aggregators
Setup process Slower and documentation-heavy Faster and easier
Cost Usually higher Usually more cost-friendly
Technical setup More formal and layered More user-friendly
Payment options Standard payment modes Wider digital payment options
Ideal users Large enterprises Startups, SMEs, and online businesses

Note: This is a general operational classification. RBI’s 2025 framework introduces a separate regulatory classification covered in the next section

Recent RBI Update on Payment Aggregator Classification

The RBI issued the Regulation of Payment Aggregators Directions, 2025 on September 15 to bring payment aggregator activities under a clearer regulatory structure.

Under the latest framework, payment aggregators are classified based on how they operate and the type of payment activity they handle.

Online

Payment Aggregators, Online

These entities handle online payment transactions for merchants through websites, apps, digital platforms, and other online channels.

Physical

Payment Aggregators, Physical

These entities support payment acceptance at physical merchant locations through POS devices, QR codes, card machines, or in-person payment systems.

Cross Border

Payment Aggregators, Cross Border

These entities handle payment aggregation for international transactions involving Indian merchants, foreign merchants, or cross-border payment flows.

This classification helps businesses identify the correct authorisation category before applying to RBI. IMC assists businesses in preparing for RBI review by checking the business flow, merchant onboarding model, settlement process, compliance framework, and supporting documents.

Key Features of Payment Aggregators

Payment aggregators help businesses accept, track, and manage digital payments through one payment setup.
Feature What It Means Business Value
Secure Payment Processing Uses encryption, tokenisation, fraud checks, and secure payment controls to protect customer and transaction data. Reduces payment risk and builds customer trust.
Many Payment Options Supports cards, UPI, net banking, wallets, EMI, and other digital payment methods. Gives customers more ways to pay and helps merchants reduce drop-offs.
Faster Merchant Registration Merchants can be onboarded with basic business documents such as PAN, address proof, bank details, and KYC records. Makes payment setup quicker than traditional bank-led processes.
Transaction Tracking Each payment creates a digital record with details such as amount, status, time, customer data, and settlement details. Helps businesses monitor payments, refunds, and failed transactions.
Fraud Checks and Alerts Systems can flag unusual activity, failed payment patterns, suspicious transactions, and chargeback risks. Supports better fraud control and dispute handling.
Settlement Support Payment aggregators collect customer payments and settle them to merchants after reconciliation. Helps merchants manage collections and cash flow in a structured way.
Customer Offers Some platforms support cashback, discounts, EMI options, and promotional payment offers. Encourages repeat purchases and improves customer response.

Who Needs a Payment Aggregator License?

A Payment Aggregator License may be required by entities that collect payments from customers and settle them to merchants or service providers.
Business Type Why It May Need the License
Payment Aggregation Companies They collect, process, and settle digital payments for merchants.
E-commerce Platforms They collect payments from buyers and settle funds to sellers or vendors.
Marketplaces They handle payments between customers and listed sellers.
Mobile Wallet Providers They may handle payment collection, merchant payments, or settlement flows.
Third-Party Payment Service Providers They offer payment collection and settlement support to businesses.
Software and Technology Companies They may integrate payment collection into their platforms for client transactions.
Online Travel and Ticketing Platforms They collect customer payments and settle amounts to airlines, hotels, vendors, or operators.
Other Digital Payment Businesses Any entity offering payment aggregation services may need RBI authorisation.

Eligibility Criteria for Payment Aggregator License Registration in India

RBI Authorisation Requirements

Requirement What It Means
RBI Approval The applicant must obtain authorisation from RBI under the Payment and Settlement Systems Act.
Net Worth at Application The company should have a minimum net worth of ₹15 crore at the time of application.
Net Worth After Approval The company should reach ₹25 crore net worth within 3 years of receiving authorisation.
Business Plan A clear 5-year business plan must be prepared for the proposed payment aggregation activity.
System Flow Report The applicant should submit system flow details and a code testing report from a software certifying agency.
PCI DSS Compliance The payment system should meet PCI DSS requirements for secure card data handling.
Customer Due Diligence The company must verify customers and merchants before onboarding them.
KYC and AML Controls A risk-based KYC and AML process should be followed to monitor users and transactions.
Nodal Officer A designated nodal officer should be appointed to handle client complaints and grievance matters.

Documents Required for Payment Aggregator License in India

The documents can be grouped into the following categories:
Category Documents Required
Company Documents Certificate of Incorporation, Memorandum of Association, Articles of Association, company PAN, and registered office address proof.
Board Approval Board resolution approving the application for Payment Aggregator authorisation.
Director Details PAN card, address proof, DSC, DIN, KYC records, and profile details of all directors.
Shareholder Details KYC documents of shareholders, ownership structure, and shareholding pattern of the company.
Financial Records Audited profit and loss accounts, balance sheet, financial statements, bank account details, and net-worth related documents.
Business Plan Business plan for the proposed Payment Aggregator activity, including past three-year business details where applicable
Technology Documents Details of IT infrastructure, payment platform architecture, security systems, and software code testing report.
Compliance Policies AML policy, KYC policy, merchant onboarding policy, risk management policy, data security policy, and dispute handling process.
Agreements Partnership agreement, vendor agreement, bank agreement, or other business agreements, if applicable.

Process to Apply through PRAVAAH for Payment Aggregator Authorisation

01
Step 1

Register on PRAVAAH

Create a company user account on RBI’s PRAVAAH portal with authorised signatory and contact details.

02
Step 2

Select PA Application

Choose the correct Payment Aggregator Authorisation application category based on the business model.

03
Step 3

Fill the Form

Enter company, promoter, director, shareholding, business model, and operational details accurately.

04
Step 4

Upload Documents

Attach the net-worth certificate, MoA, AoA, NOC if applicable, and other required documents.

05
Step 5

Review and Submit

Check all details and documents carefully before submitting the application online.

06
Step 6

Track and Respond

Monitor the application status and reply to any RBI queries within the given timeline.

Post-Licensing Compliance for Payment Aggregators in India

IMC provides payment aggregator license compliance services to help licensed entities maintain escrow records, audit reports, KYC and AML controls, fraud monitoring systems, grievance redressal records, and ongoing RBI reporting duties.

1. Financial and Reporting Obligations

  • Prepare audited annual reports to maintain proper financial and regulatory records
  • Set up nodal and escrow accounts with scheduled commercial banks for proper handling of merchant funds
  • Obtain an auditor's certificate on escrow balance to confirm escrow account records and fund position
  • Meet ongoing RBI reporting obligations including financial disclosures, governance updates, and audit submissions

2. KYC and AML Controls

  • Maintain customer identification records along with KYC documents and other relevant supporting records
  • Train employees on KYC and AML procedures to identify risk, suspicious activity, and compliance gaps
  • Implement KYC and AML controls to reduce money laundering and fraud risk in the payment structure
  • Maintain fraud monitoring systems to detect suspicious transactions, unusual payment behaviour, and chargeback risks

3. Technology and Security Requirements

  • Review user controls regularly including login rights, admin permissions, and authentication protocols
  • Conduct security awareness sessions for employees on cyber risk, data protection, and incident handling
  • Create business continuity plans to reduce disruption during system failure, cyber incidents, or other operational issues
  • Report security incidents to authorities within the required timeline as per applicable rules

4. Governance and Grievance Handling

  • Appoint a nodal officer responsible for customer complaints and grievance redressal
  • Maintain grievance redressal records and ensure timely resolution of customer issues
  • Prepare non-periodic audit reports whenever required under regulatory or internal compliance requirements
Why Choose IMC for Payment Aggregator License Services?
IMC helps fintech companies, NBFCs, e-commerce platforms, and digital payment businesses prepare for RBI authorisation with clear regulatory, documentation, and compliance support.

RBI Authorisation Guidance

As a Payment Aggregator License consultants in India, IMC provides practical guidance on RBI requirements, PA classification, eligibility conditions, net worth criteria, and the application process through the PRAVAAH portal.

Business Model Assessment

IMC reviews your payment flow, merchant onboarding structure, settlement process, escrow arrangement, and transaction model to identify the correct PA category.

Documentation Support

IMC assists in preparing key documents such as board resolutions, business plans, net worth certificates, compliance policies, system flow details, and other RBI application records.

KYC, AML and Compliance Setup

IMC helps businesses put the required KYC, AML, merchant due diligence, fraud monitoring, grievance redressal, and reporting processes in place.

Technology and Security Readiness

IMC supports coordination for system flow documentation, IT control review, code testing reports, PCI DSS readiness, data security controls, and incident reporting processes.

Post-Approval Compliance Assistance

IMC provides continued support for escrow reporting, annual audits, regulatory records, customer complaint handling, security reporting, and ongoing RBI compliance requirements.

FAQs
A payment aggregator license in India is an RBI authorisation that allows a non-bank entity to collect payments from customers on behalf of merchants and settle those funds to merchants.
Payment aggregators onboard merchants collect payments from customers through digital modes, hold the money in an approved account structure, reconcile the transaction, and then settle the amount to the merchant.
Any non-bank company that wants to collect online payments from customers on behalf of merchants and settle those funds to merchants generally needs RBI authorisation as a payment aggregator.
No, UPI is a payment system operated by NPCI, while a payment aggregator is a regulated entity that helps merchants accept payments through UPI and other payment modes.
A PA license allows a company to legally offer merchant payment collection, settlement, refund, reconciliation, and digital payment support under RBI’s regulatory framework.
Banks can provide payment aggregation or merchant acquiring services, but bank-operated models and non-bank payment aggregators are treated differently under RBI’s regulatory framework.
Key documents usually include the application form, net-worth certificate, MoA, AoA, company details, promoter and director details, shareholding structure, business plan, compliance policies, IT and cyber security documents, and NOC from the concerned regulator, if applicable.
No. A non-bank entity should not start payment aggregator operations without RBI authorisation. The Certificate of Authorisation permits the applicant to commence or carry on a payment system, subject to RBI conditions.
A non-bank Payment Aggregator is generally required to have a minimum net worth of ₹15 crore at the time of application, and this must increase to ₹25 crore by the end of the third financial year from authorisation.
A Payment Aggregator must have systems for merchant due diligence, KYC checks, transaction monitoring, fraud control, escrow management, cyber security, dispute handling, refunds, settlement tracking, and regulatory reporting. RBI’s framework places strong focus on governance, fraud prevention, consumer protection, and operational controls.