RBI Grants Approval to ZaakPay to Operate as an Online Payment Aggregator

New Delhi: RBI Grants Approval to ZaakPay, a Subsidiary of MobiKwik, as an Online Payment Aggregator

The Reserve Bank of India (RBI) has granted approval to Jaak E-Payment Services Pvt. Ltd. (ZaakPay), a key subsidiary of MobiKwik, to operate as an “Online Payment Aggregator.” This approval has been issued under the Payment and Settlement Systems Act, 2007. With this authorization, ZaakPay is now permitted to process merchant payments through online platforms, enabling it to facilitate secure and regulated digital transactions across India.

On Wednesday, MobiKwik stated in a filing to the stock exchange that this approval will help the company expand its presence in the digital payments space. ZaakPay has now joined the list of several fintech companies that have recently received this authorization from the RBI.

Before the Announcement, MobiKwik Shares Dropped on BSE

Prior to this announcement, shares of MobiKwik Systems closed at ₹252.45 on the Bombay Stock Exchange (BSE), down ₹7.70 from the previous day — a decline of 2.96%. The company stated that this move will help its subsidiary operate under the "Payment Aggregator" regulatory framework, enabling it to grow its business in compliance with RBI norms.

How Do Payment Aggregators Work?

Payment aggregators act as intermediaries that simplify online payments between customers and merchants. Their main role is to integrate multiple payment options (like UPI, credit/debit cards, and net banking) into a single platform to process transactions efficiently.

For example: When you order food on Swiggy and pay using Google Pay, it’s a payment aggregator like Razorpay or Cashfree that handles the backend transaction processing.

Step-by-Step Process of a Payment Aggregator:

Initiating Payment:
A customer selects a product or service on a website or app (e.g., Flipkart, Zomato) and clicks "Pay Now." This activates the payment aggregator.
Displaying Payment Options:
The aggregator displays all available payment methods such as UPI, wallet, card, or net banking.
Connecting to the Payment Network:
Based on the customer’s choice, the aggregator connects to the relevant payment network (e.g., Visa, Mastercard, NPCI for UPI) and seeks transaction authorization from the respective bank or payment provider (e.g., Paytm Bank, HDFC Bank).
Ensuring Security:
The aggregator uses encryption and fraud detection systems to secure the transaction, following industry standards like PCI-DSS (Payment Card Industry Data Security Standard).
Confirmation and Settlement:
If the payment is successful, the aggregator sends confirmation to both the customer and merchant. The funds are usually transferred to the merchant's bank account within 1–3 working days.