India authorises Google and Amazon to aggregate internet payments

While the central bank let tech giants to onboard digital merchants and process payments, it views big tech in banking as a danger to financial stability and community banks.

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Wednesday, the Reserve Bank of India published a list of 32 businesses authorised to act as online payment aggregators. The list includes Alphabet Inc.’s Google Pay, Inc.’s Amazon Pay, and Reliance Payment Solutions Ltd.

The identities were disclosed in order to “disseminate information and ensure more transparency,” according to the central bank’s website. Zomato Payments Pvt. Ltd., Pine Laboratories Pvt. Ltd., and Infibeam Avenues Ltd. are also approved entities.

The regulator stated that it is evaluating the applications of 18 others, but they can continue to function as payment aggregators.

Four applications have been rejected, including those of Axis Bank-led Freecharge Payment Technologies Pvt Ltd. and PayTM Payments Services Ltd. They may continue operations without adding new merchants and reapply within 120 days of the return date, according to the RBI.

While the central bank permitted the tech giants to onboard digital merchants and handle client payments on their behalf, it views the tech giants’ entry into the full-fledged banking field as a danger to financial stability and local banks.

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