New users as top payment gateways hit by RBI freeze
Payment aggregators such as CCAvenue and Pine Labs’ Plural have seen an increase in onboarding of new users and gained more online merchants after top payment gateways like Razorpay, Cashfree Payments, PayU and Paytm paused new sign-ups following regulator’s order and rejection of payment aggregator (PA) licence applications by the Reserve Bank of India (RBI) in some cases.
According to industry estimates, before the ban, Razorpay, PayU, Paytm and Cashfree constituted 70%-80% of new online merchant onboardings monthly. However, in terms of total payment value (TPV) BillDesk continued to be the leader, followed by the affected gateways.
Existing partners of these affected payment gateways are also onboarding newer partners (which have received in-principle PA licences from the RBI) as backup, in a bid to mitigate any future risks, and ensure that they are working with fully compliant partners.
Source: economictimes.indiatimes
