Fintech that offers off-line payments Mswipe has announced that it has received preliminary acceptance from Reserve Bank of India (RBI)for the license of a payment aggregator.
The payment system, which is that is geared towards merchants, is currently the most recent competitor to be approved following Razorpay, Pine Labs, Stripe, Innoviti,and 1Pay.
Payment aggregaters (PA) are companies which allow e-commerce websites for merchants and allow them to take a variety of payment methods from customers to meet their obligations to pay and without the need for merchants to develop an independent payment integration system for themselves.
In this procedure, PAs receive payments from customers, pool them, and then transfer them to merchants following a certain time. Particularly, banks and non-bank PAs manage money in their daily activities. However, banks offer PA services in the course of their regular banking relationship , and don’t require separate authorization of the RBI. However, non-bank PAs require authorization through the RBI.
A total of 185 fintech firms and startups requested licenses in the in the past year. Of these, most were turned down at the RBI due to strict examination and the strict requirements.
Online payment is accepted for entry
Mswipe The company, which provides the point-of-sale (POS) equipment to retailers for offline transactions currently, is planning to launch an online payment gateway, which will mark its debut in the world of online payments.
It will initially introduce it to the 700 companies, followed by SMEs, Ketan Patel, CEO of Mswipe told Business Headers
The idea is to create an all-in-one shop for these customers, with every payment method accepted, reconciliations, and so on. Then we would expand it to less prominent or less focused SMEs that have an annual turnover of between Rs 100-200 millions, the CEO said.
To come: PPI licence
In the wake of the issuance of an NBFC and PA license, Mswipe is looking to receive a pre-paid payment instruments (PPI) license at the Central Bank over the coming weeks.
The PPI license allows companies to run payment systems, such as digital wallets as well as prepaid transit cards and vouchers.
Expanding internationally is in the plans for Mswipe. The company is considering Southeast Asia, UAE, Sri Lanka, and Africa as the next major market for retail Point of Sale.
Mswipe is supported by investors including Falcon Edge, Equip Capital, B Capital Asia, Matrix Capital Partners, and DSG Partners. The company posted a profit of Rs 241 crore for FY21. It is not yet to release its profits for the fiscal year that is currently in session. It is competing with Pine Labs, BharatPe, Ezetap, Paytm, and PhonePe in the space of offline payments.
MCapital the lending arm and a fully controlled subsidiary of Mswipe Technologies, plans to raise the amount of merchant loan loans it disburses from 70 percent in FY22, to Rs 200 crore in FY23.