Stripe India Private Limited, the Indian arm of the global digital payments giant Stripe, has secured the final approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator. This significant development signals a new era for digital transactions in India.
Stripe’s Evolution: From Code Tool to Fintech Suite
Founded in 2010 in San Francisco, Stripe began as a single tool, providing developers with code to enable credit card payments on their websites. Over the years, it has evolved into a comprehensive suite offering billing, tax, and various other fintech tools. In 2021, Stripe raised $6.5 billion in funding at an impressive $50 billion valuation from prominent investors, including GIC, Goldman Sachs Asset and Wealth Management, and Temasek.
RBI’s Approval: A Milestone for Stripe India
Stripe India Private Limited received the final go-ahead from the RBI on January 15, marking a significant milestone in the company’s expansion into the Indian market. This approval positions Stripe to play a pivotal role in shaping India’s digital payments landscape.
Payment Aggregator Framework and Regulatory Landscape
Introduced by the RBI in March 2020, the payment aggregator framework mandates that all payment gateway operators obtain a license for acquiring merchants and implementing digital payment solutions. The regulatory landscape has been a challenging one, with the process of obtaining licenses proving to be intricate and time-consuming for many payment solution providers.
Zomato’s Parallel Approval and Industry Impact
Coinciding with Stripe’s approval, Zomato, a major player in the Indian foodtech scene, also received the final green light from the RBI to operate as a payment aggregator. This dual approval underscores the growing significance of digital payments within India’s dynamic business environment.
Expanding Horizon: Tata Payments and DigiO Join the Ranks
In a broader trend, Tata Payments and identity verification startup DigiO, backed by Groww, also secured payment aggregator licenses from the RBI earlier this month. This expansion further reinforces the evolving landscape of digital transactions and fintech solutions in India.
