RBI Greenlights PhonePe for Merchants, Digital Payment Growth Ahead

RBI Clears PhonePe Expansion: Before Diwali, the Reserve Bank of India has given a major gift to fintech company PhonePe. PhonePe will now be able to operate not only as a digital payment app but also as an online payment aggregator. This means the company will be able to provide small and medium businesses (SMEs) with the ability to collect and settle payments instantly.

The company's plans after approval

PhonePe received this license last Friday. The company will now be able to further strengthen its merchant network. Yuvraj Singh Shekhawat, Head of PhonePe's Merchant Business, said that businesses in the SME segment, which previously lacked access to digital payment facilities, will now receive better services.

Easy and Fast Payments for Small Businesses

PhonePe's payment gateway instantly onboards merchants and makes integration easy for developers. This increases payment success rates and provides customers with a smooth checkout experience. This will benefit both merchants and businesses.

PhonePe Statistics

Launched in 2016, PhonePe is one of India's largest fintech companies. It has over 650 million users, a network of 45 million merchants, and over 360 million daily transactions. The company's portfolio spans payments, lending, insurance, wealth products, hyperlocal e-commerce, and app store services.

What is an online payment aggregator?

Online payment aggregators help merchants to accept digital payments from their customers. It consists of four main steps:

• Merchant Onboarding: The business signs up on platforms, and KYC and business details are verified.
• Payment Gateway Integration: The aggregator adds a payment gateway to the merchant website or app.
• Multiple Payment Options: Credit/debit card, UPI, net banking, and wallet provide options.
• Payment Processing: The customer coordinates with the bank and card network on payment. Successful or unsuccessful payment information is available immediately.

With this decision, PhonePe will not only expand its merchant network but will also enable small businesses to participate in economic activities faster by connecting them to digital payments.