CRED Secures Final Payment Aggregator Licence from RBI

In order to become a payment aggregator, the fintech company Cred was granted a final licence by the Reserve Bank of India (RBI) on 10 March. This paves the way for the company to accept merchants, process payments across various instruments, and deal with refunds and settlements. A prepaid payment instrument (PPI) approval and an online and physical payment aggregator licence have been granted to the Bengaluru-based fintech startup by the banking regulator. According to Cred creator Kunal Shah, stakeholder trust has always played a pivotal role in the brand's development of Cred.

Performance, dependability, openness, and governance have always been at the forefront of the company's operations. The permission to function as a payment aggregator is a testament to the confidence Cred has steadily established throughout the ecosystem. This assurance has laid the groundwork for the next phase of facilitating financial advancement for the most creditworthy individuals in India.

Cred Building its Regulatory Profile                    

The organisation possesses a number of licences, including those from the Insurance Regulatory and Development Authority of India (IRDAI) for corporate agency, the Securities and Exchange Board of India (Sebi) for registered investment advisory, and the National Payments Corporation of India (NPCI) for third-party application provider (TPAP).

The company said that Cred is now permitted to directly manage fundamental payment flows. As a result, members may anticipate a payment experience that is faster, more frictionless, and more dependable. The company asserts that it processed payments totalling over INR 8.5 trillion for over 15 million customers in FY25. According to data provided by the RBI, India is home to over 50 licensed payment aggregators.

BHIM Overtakes CRED

 The Bharat Interface for Money (BHIM) of NPCI outpaced FamApp and Kunal Shah-led CRED in terms of UPI transaction volume in January. It processed 17.2 Cr transactions totalling INR 22,025.9 Cr over the specified month. Additionally, the app's market share rose from 0.7% in December to 0.8% in January. Total UPI transactions for January reached a new all-time high of 21.7 Bn transactions worth INR 28.33 Lakh Cr, according to data from the National Payments Corporation of India (NPCI).

Even while PhonePe's market share has been declining for a while, the company saw a little increase in January's transaction volume, reaching 991.3 cr. From December's 45.3% market share, the company's performance in the current month increased to 46.6%. For the month, its transaction value was INR 13.7 lakh Cr.