RBI Lifts Ban on Payment Aggregators
In a pivotal move that heralds a new era for online transactions Cashfree Payment Aggregator to Onboard 20,000 Merchants After RBI License, the Reserve Bank of India (RBI) recently lifted a year-long ban on certain payment aggregators. This move comes after RBI directed these aggregators to temporarily halt onboarding new online merchants until additional documents were submitted. With the RBI’s renewed authorization, payment companies, including industry leader Cashfree Payments, can now usher in a wave of new merchants onto their platforms, revolutionizing the landscape of online payments.
A Conversation with Mr. Riu Datta, Co-founder of Cashfree Payments
In an exclusive interview, Mr. Riu Datta, the co-founder of Cashfree Payments, shared insights into the impact of RBI’s decision and the future prospects for the company.
Seizing Opportunities: A Game-Changer for Cashfree
Mr. Datta expressed his enthusiasm, stating that the RBI’s decision is a significant boon for Cashfree Payments. As one of the country’s leading aggregators, Cashfree has been at the forefront, having received full authorization to operate as an aggregator and onboard new merchants. Datta highlighted that nearly 50% of new merchants seeking payment solutions in the country turn to Cashfree, making the company a preferred choice.
Overcoming Challenges: Navigating a Year-Long Hold
Reflecting on the challenges faced during the year-long restriction, Mr. Datta emphasized that while onboarding new merchants was temporarily halted, Cashfree focused on nurturing existing relationships. With over 300,000 businesses in their portfolio, the company directed its efforts towards providing value-added services such as KYC services and the newly launched Flow Wise payment management system.
Charting the Course for Growth: Ambitious Targets and Strategic Focus
Ambitious Growth Plans: Targeting 80-100% Year-on-Year Expansion
Looking ahead, Cashfree has set ambitious growth targets, aiming for an 80-100% year-on-year expansion. Despite the conservative growth in the past year, the company processed approximately $40 billion in 12 months. The focus now lies on onboarding the backlog of nearly 20,000 merchants who have eagerly awaited approval, with 8,000 already fully prepared with KYC documentation.
Streamlining Onboarding: Clearing the Backlog and Focusing on Merchant Experience
Mr. Datta explained that the immediate priority is clearing the backlog of merchants waiting to onboard, ensuring a seamless onboarding process. With an influx of around 30,000 inbound merchant leads every month, Cashfree is determined to enhance the merchant experience and regain momentum in its growth trajectory.
The Rapid Onboarding Process: Revolutionizing Merchant Integration
Efficient Onboarding: A Matter of Hours, Not Days
Highlighting the efficiency of Cashfree’s onboarding process, Mr. Datta outlined that, in most cases, the automated checks enable merchants to go live within a few hours. With a streamlined and automated system, the onboarding process typically takes 15 to 20 minutes, ensuring a swift and hassle-free experience for businesses.
Cybersecurity and Compliance: Safeguarding Digital Transactions
In response to concerns about cybersecurity and fraudulent activities, Mr. Datta emphasized that compliance is at the core of Cashfree’s operations. The company collaborates closely with regulators and enforcement agencies to implement best practices and ensure robust risk and fraud monitoring, aligning with the evolving landscape of digital payments.
Navigating Partnerships and Future Endeavors
Strengthening Partnerships: The Role of State Bank of India
Discussing the partnership with State Bank of India (SBI), Mr. Datta acknowledged the value of having a government-owned institution on their cap table. The collaboration with SBI provides Cashfree with valuable access to problem-solving opportunities and reinforces trust within the ecosystem.
Future Prospects: Exploring Diverse Product Portfolios and Potential Acquisitions
While focusing on consolidating its position as a payment aggregator, Cashfree is exploring diverse product portfolios. Initiatives like Flow Wise, which offers an enterprise-grade payment experience, and KYC verification services showcase the company’s commitment to innovation. While no imminent acquisitions are on the horizon, Cashfree remains open to collaborating with innovative teams and founders in the future.
Conclusion: A Bright Future for Cashfree Payments
As the interview concluded, Mr. Datta expressed gratitude for the unexpected New Year gift from the RBI. While there are no immediate plans for pricing changes or discounted merchant rates, the primary focus for Cashfree is to continue solving payment and business challenges for merchants, contributing to the dynamic evolution of India’s digital financial ecosystem.
