In a significant move, Innoviti Payments and Concerto Software have been granted the coveted online payment aggregator (PA) licences by the Reserve Bank of India (RBI). This development propels both companies into the league of esteemed players in the digital payments ecosystem, alongside renowned names such as MSwipe, Razorpay, Cashfree, and Zomato.
Key Highlights
1. Authorizations and Implications
- In-Principle Approval: The RBI’s grant of in-principle approval signifies a pivotal step for Innoviti Payments and Concerto Software. While this is an initial nod, the final approval is expected in the coming months.
- Settling Ecommerce Transactions: As authorized PAs, these companies can now settle ecommerce transactions. The licence also brings them directly within the purview of RBI regulations.
- Unified Payment Experience: Innoviti Payments, based in Bengaluru, operates an offline payment service for large retailers such as DMart, Tanishq, and Shoppers Stop. Through its online payment system named ‘Innoviti Link’, the company aims to offer a unified payment experience to its customers across both offline and online channels.
2. Concerto Software’s Role
- Vegaah Gateway: Concerto Software’s payment gateway, Vegaah, complements Innoviti’s efforts. Together, they seek to provide an omnichannel experience for customers, bridging the gap between online and offline payments.
3. Industry Landscape
- Other Players: Notably, CCAvenue, operated by listed fintech company Infibeam Avenues, also received its PA licence from the RBI earlier this month. The competition is fierce, with multiple players vying for a share of the growing digital payments market.
4. Financial Performance
- Innoviti reported ₹1,400 crore in revenue from operations in FY23, a substantial increase from ₹393 crore in FY22. While losses edged up slightly to ₹1,347 crore in FY23, the company remains committed to innovation and expansion.
Conclusion
As the fintech industry continues to evolve, these newly authorized payment aggregators are poised to contribute significantly to India’s digital payment ecosystem. Their entry promises greater convenience and efficiency for consumers and businesses alike.
Disclaimer: The information provided in this article is based on publicly available sources.
