Cred receives RBI's clearance in principle to function as a payment aggregator

Cred receives RBI's clearance in principle to function as a payment aggregator

The Kunal Shah-led business is the fourth-biggest UPI participant, with over 15 million active users.

A source close to the matter claims that fintech company Cred has obtained the Reserve Bank of India's in-principle clearance to function as a payment aggregator (PA).

Being a PA enables businesses to handle and transfer consumer funds to merchants. The RBI will provide a license or final permission after six to twelve months, so individuals who get in-principle approval may go on with their commercial operations until instructed otherwise.

Based in Bengaluru With regard to credit card bill payments, Cred is the biggest third-party app in the nation. Among other goods and services, it also manages a modest e-commerce site, a platform for carefully chosen trip packages, and vehicle maintenance.

With over 15 million active users, the Kunal Shah-led business ranks fourth among Unified Payments Interface (UPI) providers with a volume market share of 2.3 percent on the biggest digital payments network in the nation.

In order to join the financial management industry, Cred purchased Kuvera a few months ago. Approximately three lakh wealthy clients used Kuvera's wealth goods. Apart from additional options like SIPs (systematic investment plan), foreign equities (commercial agreement with Vested Inc), pension fund, and digital gold, mutual funds and fixed deposits (FD) stand out as the most popular among the many products.

Cred reported operating income of Rs 1,400 crore for FY 23, up 256 percent from Rs 393 crore for FY 22. Cred's losses increased slightly to Rs 1,347 crore in FY23, a 5% increase from Rs 1,280 crore in FY22, while the company lowered its client acquisition costs by almost 80% in the same year.

Several payment gateway providers have been getting the ultimate go-ahead from RBI to become PAs since late last year. These consist of, among others, EnKash, Cashfree, Zoho, CC Avenue, Razorpay, and Tata Pay.