CRED receives in-principle nod for payment aggregator licence: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bengaluru-based fintech unicorn CRED has reportedly secured an in-principle approval for a payment aggregator licence from the Reserve Bank of India (RBI).

Citing sources, TechCrunch said in its report that the $6.4 billion startup has attained the crucial nod from the RBI, signalling a green light for its expansion plans.

Payment aggregators play a pivotal role in facilitating seamless online transactions by bridging the gap between merchants and customers. With the RBI’s nod, CRED joins the league of select companies, including Reliance Payment and Pine Labs, empowered to lead this transformative space.

The significance of this approval extends beyond operational convenience. Fintech startups like CRED, without a licence, often grapple with dependency on third-party processors, potentially hindering their ability to optimise transaction processes. With the licence in hand, CRED gains autonomy to streamline payment flows, reduce costs, and directly engage with merchants, thereby fortifying its market position.

This breakthrough for CRED comes against the backdrop of regulatory scrutiny in the fintech sector. The RBI’s cautious approach towards licensing, coupled with recent interventions like the directive to Paytm Payments Bank, underscores the regulatory environment’s evolving nature.

CRED’s journey, which began six years ago with a focus on credit card bill payments, has evolved into a comprehensive suite of financial products. From loans to investment platforms like Kuvera,

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow