Fintech startup 1Pay, backed by ex-Goldman Sachs MD Sanjiv Shah and Sanjay Gaitonde, has become one of the first companies in India to get approval from Reserve Bank of India to operate as a payment aggregator.

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The payment aggregator framework, introduced formally in March 2020, mandates that only firms approved by the RBI can acquire and offer payment services to merchants.

RBI has been strict in its evaluation of entities that have applied for the payment aggregator license.

Multiple online payment gateways seeking the aggregator license came under the intense scrutiny of the central bank for know-your-customer (KYC) related issues, past dealings with cryptocurrency exchanges and gaming apps, and for not complying with the net worth criteria that RBI had set out.

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“1Pay is creating a seamless payments platform for the unorganised sector that empowers them to accept and make digital payments. 1Pay is one of the few platforms focusing on digitally unifying the unorganised logi-fintech space," Gaitonde said.

He said RBI's approval for a startup in the fintech space demonstrates the central bank's commitment to digitally unifying the country.

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1Pay is a full-stack payment platform and one of the few that focuses on digitally unifying the unorganised logi-fintech space. They bring transportation, logistics and the banking industry on one platform.

The company offers a vendor payout system, B2B invoice collection system, e-governance, customised bill payment, among others.

Currently, the platform has an annualised gross transaction value of Rs 8,500 crore plus and an annualised transaction volume of over 30 million. The startup offers payment solutions to logistics, OEM suppliers, OMC and fuel distributors, and FASTag issuers.

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First Published:Jul 8, 2022 2:18 PM IST