Amazon Pay Gets RBI’s Payment Aggregator License, Now Will Operate As Payment Aggregator

Amazon Pay said the move will allow the firm to further strengthen distribution channels and deliver innovative solutions for merchants and customers across India.

Mumbai: In a significant development, Amazon Pay, the fintech wing of e-commerce major Amazon India, has received a payment aggregator licence from the Reserve Bank of India (RBI), the company said in a statement. Interestingly, Amazon Pay joins a list of companies that the RBI has granted authority to operate as payment aggregators (PA) recently.

“We are excited and thankful to receive the final authorisation from the Reserve Bank of India (RBI) to function as a payment aggregator. We remain committed to simplify lives and fulfill the aspirations of merchants and customers,” an Amazon Pay spokesperson was quoted as saying by Business Standard.

Notably, the regulatory approval was granted to Amazon Pay on February 20, allowing the payments platform to function as a payment aggregator, empowering it to facilitate e-commerce transactions through its application.

This development comes amid a series of licensing approvals, with 10 companies receiving the coveted license since the onset of 2024.

The company in the statement said that the authorisation from the banking regulator would enable it to strengthen its distribution channels.

The spokesperson added that the move will allow the firm to further strengthen distribution channels and deliver innovative solutions for merchants and customers across India.

Apart from Amazon Pay, two fintech startups such as Decentro and Juspay, and enterprise software-as-a-service (SaaS) firm Zoho have received final authorisation from the RBI for payment aggregator (PA) licences this month.

It worth mentioning that food delivery firm Zomato, and fintech firms Stripe and Tata Pay were the few companies to have bagged the licence in January. Nearly, 10 companies have been given the license since 2024 and these firms includes food aggregator Zomato, Juspay, Decentro, Mswipe, Zoho, Stripe among others.

Amazon Pay already holds a Prepaid Payment Instruments (PPI) license to operate its wallet services-Amazon Pay balance: Money, the RBI documents shows.

The payment aggregator license permits a company to operate as an intermediary between merchants and payment processors or banks and it also enables the aggregator to accept payments on behalf of multiple merchants, consolidate them, and then distribute the funds to the respective merchants.

Apart from the payment aggregator license, Amazon Pay already holds a Prepaid Payment Instruments (PPI) license, enabling it to operate its wallet services, including Amazon Pay balance: Money, as outlined in RBI documentation.