Why in the news
MobiKwik, mostly an online payments player so far, got a regulatory go-ahead to extend aggregation to physical shops, aiming to cover both online and offline payments.
Key facts
- Company: One MobiKwik Systems Limited, parent of MobiKwik.
- Approval: in-principle nod from the RBI for a PA-P licence.
- Scope: payment aggregation for physical, offline merchants.
- Regulatory base: RBI framework for offline payment aggregators, finalised in 2024.
Services possible under PA-P
| Service | Use |
|---|
| PoS acceptance | In-store card and digital payments |
| QR payments | Static and dynamic codes at counters |
| Merchant settlement | Moving proceeds to merchant bank accounts |
| Soundbox | Audio payment confirmation in the local language for small shops |
| EDC machines | Card swipe and digital acceptance devices |
PA-Online versus PA-Physical
| Type | Coverage |
|---|
| PA-Online | E-commerce, subscriptions, app and website payments |
| PA-Physical (PA-P) | Offline retail via PoS, QR and EDC |
About payment aggregators
- A PA lets merchants take payments by cards, UPI, net banking, wallets and QR without separate deals with each bank.
- It receives funds in an escrow account and settles to the merchant, usually within T+1.
- Rules: Payment and Settlement Systems Act, 2007; RBI Guidelines on Payment Aggregators and Gateways, 2020; need RBI authorisation and minimum net worth of ₹15 crore by the end of the third financial year.
- Other framework items: Master Directions on Digital Payment Security Controls, 2021 and the RBI-Integrated Ombudsman Scheme, 2021.
- A Payment Gateway only provides the technology layer and does not handle funds.
Exam angle
- Regulator: RBI; parent law: PSS Act, 2007.
- Net worth norm: ₹15 crore by third year-end.
- Distinguish PA-Online, PA-P and Payment Gateway.