The Indian subsidiary of French digital payments major Worldline, Worldline ePayments India Pvt Ltd, has been certified by the Reserve Bank of India (RBI) to be a payment aggregator (PA). The strategic partnership with Worldline ePayments enables the company to onboard merchants and offer digital payment acceptance services in the country.
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This article will focus on the background of Worldline ePayments India, RBI authorization, and its influence on the digital payment system scenario in India.
Table of Contents
Overview of Worldline ePayments India Pvt Ltd
Worldline ePayments India landed in the Indian market in 2017 via Chennai-based payments platform MRL PosNet acquisition that cost $104.5 million. Since then, the company has been providing multiple services in India, including PoS terminals, biller network solutions via the Bharat Bill Payment System (BBPS), and online payment solutions. Being an expert and experienced in the digital payment field, Worldline ePayments India has built a strong name in the Indian market.
Significance of RBI Authorization
RBI’s sanction of Worldline as an online payment aggregator demonstrates the company’s determination to the Indian market. This illustrates their adherence to regulation and shows the role a well-built payment system plays. The authorization by RBI is evidence of Worldline’s proficiency and compliance with the regulations and norms existing in the Central Bank. This license also reinforces Worldline’s presence in India and opens up avenues to expand the company’s operations, covering a significantly larger customer base.
Influence of Digital Payment Landscape in India
The RBI’s granting of Worldline ePayments India the license as a payment aggregator will have a major impact on India’s digital payments scene. Worldline, which is a payment aggregator, is able to process online payments between customers and merchants, helping to improve the method of payments and providing customers with a smoother experience. Digital payments will grow and will be widely adopted because of this.
Furthermore, the entry of Worldline as a payment aggregator in itself creates more competition and, hence, more innovations so that the quality of digital payment services provided to Indian customers improves.
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Worldline’s Services in India
Worldline ePayments India provides a wide range of services in the Indian market. Such services are gradually gaining ground with the increasing demand for digital payment systems and are delivering both convenience and efficiency to businesses and consumers.
One of the major services offered by Worldline is PoS terminals. These terminals are used by merchants to accept card payments, which ensure a secure and convenient way of payment for the customers. Worldline’s PoS units are supplied with cutting-edge features and techniques to ensure seamless transactions and provide security against fraud.
Worldline provides online payment solutions which allow business entities to receive payments in different digital channels like websites, mobile apps, and e-commerce platforms. These solutions are capable of multiple payment methods like credit cards, debit cards, net banking and digital wallets, thus giving customers ease and comfort in the process of payment making.
The purchase in 2017 of MRL PosNet, a payments platform based in Chennai, has allowed Worldline substantial enhancement of its products and services in India. Through this strategic acquisition, Worldline not only gains access to the existing infrastructure and knowledge of MRL PosNet but also strengthens its position in the Indian market further.
Worldline India ePayments also has a tie-up with NPCI International Payments Limited (NIPL), which is the International arm of the National Payments Corporation of India (NPCI). The partnership has resulted in the launch of UPI and RuPay payments in Europe, enabling smooth cross-border payment transactions between India and Europe.
Regulatory Environment for Online Payment Aggregators
The most recent license for Worldline ePayments India to operate as an online payment aggregator is part of the broad regulations for digital payment solution providers in India. The RBI has strengthened its vigilance in the digital payments area to satisfy locally applicable rules of money laundering and other regulatory requirements.
Along with Worldline, RBI has also granted in-principal approval to many other payment aggregators, including fintech unicorn Groww’s bill payment platform ‘Groww Pay Services, CRED co-founder Kunal Shah, PayU, Khatabook, and others. These approvals are in line with the regulatory authorities’ focus on developing a secured and regulated payments ecosystem.
The increasing significance of compliance and regulations for online payment aggregators emphasizes the fact that the systems and processes need to be tightened to prevent fraud, ensure data safety, and protect customer needs. The authorization of the RBI serves as proof to customers and merchants that Worldline ePayments India operates within the legal framework of the payment system, providing a secure and reliable platform for payment transactions.
Growth of Digital Payment User Base in India
Worldline ePayments India has just been authorized as a payment aggregator at a time when the digital payment user base is rapidly growing in India. With the migration of more people and organizations to digital payment options, there will be an urgent need for secure and effective payment gateways to enable these transactions. The domestic payment gateway industry is predicted to reach a value of $2.66 billion by 2029, a lucrative area for Worldline to penetrate.
Foreign companies such as Worldline are coming into the Indian digital payment market, which is a testament to the greatness and potential of the Indian market. Given its authorization as an aggregator, Worldline could employ its worldwide experience and expertise to boost the adoption of digital payments in India. Their solutions will not only meet the demands of the existing customers but also attract more customers who are looking for secure and convenient digital payments.
Conclusion
The authorization given to Worldline by the RBI as an online payment aggregator is an important landmark for Worldline ePayments India and the digital payments sector in India. Worldline’s diversified products, including PoS terminals, biller network solutions, and online payment solutions, make the company an important player in the market.
The increasing number of digital payment users in India presents a great challenge for Worldline and the regulatory framework ensures compliance along with a secure and transparent payment ecosystem. Now that Worldline has got the authorization, it is in a better position to be part of the development and elevation of digital payments in India.
