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Payment Aggregator (PA)
Context
The Reserve Bank of India has granted payment aggregator (PA) licences to numerous payment providers and big merchant organizations in recent monthsWhat is a PA business?
- PA businesses are companies that help online retailers and e-commerce sites accept different payment methods from clients to fulfill their payments without requiring the merchants to set up their own infrastructure.
- Key-examples: Amazon Pay, PayPal, Stripe, others.
- PAs enable their clients to accept various payment methods such as UPI, debit cards, credit cards, cardless EMIs, bank transfers, e-wallets.
- After receiving payments from clients, PAs combine them and send them to the retailers.
- Requirement:A company that submitted an application for a PA license had to have had a net value of Rs. 15 crore as of March 31, 2021, and Rs. 25 crore as of March 31, 2023.
- Features:
- Seamless Onboarding, Integration and Sub-Merchant Account
- Secure Payment Processing
- Fraud Detection and Prevention
- Multiple Payment Options
- Fast Settlements and Customer Support
- Significance:
- For organisations:In addition to these organizations' expansion and significance
- For RBI and economy: RBI can keep an eye on the businesses that manage or transfer substantial sums of money. The RBI is able to monitor any suspected money laundering activities and high-value suspicious transactions by licensing these companies and placing them under its direct supervision.
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