Payment Aggregator License

Payment Aggregator Licenseis obtained by a payment aggregator who is a service provider to allow payments and E-Commerce merchant payments through transactions. Now, through the aggregator license, the merchant can accept card payments and bank transfers without requiring a bank account or credit card. The merchant aggregator is an accessible carrying payment for specific small-scale businesses to get the transaction done more quickly. The purpose of the payment aggregator is to provide a proper payment solution for companies, which is much faster and more straightforward than the traditional payment methods that are followed and act as a bridge between the customers and the merchant. In this write-up, we will learn about the importance of a payment aggregator, the documents, and the process required to obtain a license.

Requirements

The payment aggregator license in India calls for specific requirements that are to be followed by the payment aggregator as follows:

• There must be a minimum worth of 15 crores, which must be increased to 25 crores within the three years of the operation of the payment aggregator
• There must be at least three directors and two members in the payment aggregator business
• The specific terms of the PCI DSS must be complied with.

Objective

The purposes of the payment aggregator license are stated as follows:

1. It provides the opportunity to accept payments without even having a bank account or a credit card.
2. It provides an easy alternative to accept payments other than the traditional methods.
3. It ensures that the business remains compliant with the financial regulations.
4. It works according to the data security and encryption methods;therefore, it is a safe transaction method.
5. It undergoes several background checks on the merchant.
6. The directors of the payment aggregator are also fit and proper; otherwise, the License would not have been granted.

Advantages

There are several advantages of a payment aggregator license, as follows

• It acts as a bridge between the customers and the merchant, enabling safe and secure transactions
• It allows for the settlement of the customers with merchants on the other platforms.
• It is a very cost-effective and efficient approach towards transactions made in smaller skill businesses.
• It helps in the processing and completion of every kind of payment transaction without the need for a bank account or credit card.
• The application process for the License is straightforward, and it helps to function small businesses conveniently.

Disadvantages

Now, certain documents are required for a payment aggregator business, as follows:

• The incorporation certificate of the company, which has been granted by the Registrar of Companies
• The signature certificate and director identification number must be provided
• The PAN card and the proof of address of the directors
• The evidence of the address of the business
• The details of the bank account of the company must be provided
• Five-year business plan of the company
• An authenticate software agency must provide the testing report of the code

Process

The process of obtaining a payment aggregator license is as follows:

1. The first step is to obtain authorization under the PSS Act of the RBI.
2. The next step is to set up an appropriate framework against money laundering.
3. The third step is to get the company's incorporation under the Companies Act 2013.
4. It must be noted that a minimum of 15 crore, which must be expanded up to 25 crorenet worth, is required, which must be expanded within the three years of the working of the payment aggregated business.
5. It is essential to appoint a nodal officer to handle the grievance and disputes.

Why Adviso?

A payment Aggregator License involves many requirements, document preparation, and pre-and post-compliance obligations. It is essential to comply with the specific terms of the License. Obtaining a Payment Aggregator License can be a tedious process without professional support. That's where Adviso comes in.At Adviso, we provide expert services for society registration online approvalunder the Reserve Bank of India. Our Lawyers, CA, and CS experts guide you through every step of the journey to ensure your company lists smoothly and efficiently.With Adviso's expertise and assistance, you can easily navigate the complexities of a Payment Aggregator License, saving time and ensuring compliance with all necessary regulations.