Aurionpro Payments gets RBI clearance to operate as an online payment aggregator with AuroPay

Aurionpro Payment Solutions Private Limited, the fintech subsidiary of Aurionpro, has secured final authorization from the Reserve Bank of India (RBI) to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007. The regulatory clearance marks a pivotal development for the Mumbai-based financial technology provider, enabling it to formally launch its payment brand, AuroPay, and directly service merchants, e-commerce platforms, and small and medium-sized enterprises (SMEs) across India.

The RBI’s approval allows Aurionpro Payments to collect, process, and settle funds between customers and merchants, positioning AuroPay as a fully regulated gateway in India’s competitive digital payments landscape. The license opens the door for the fintech arm of Aurionpro to transition from a technology solutions provider to a principal payments operator with end-to-end control over merchant services.

How does the RBI license change Aurionpro Payments’ position in the fintech ecosystem?

The online payment aggregator license authorizes Aurionpro Payment Solutions to onboard merchants directly, route customer payments securely, and settle transactions through acquiring banks in full compliance with RBI guidelines. Licensed aggregators must meet stringent capital adequacy requirements, establish robust IT systems for fraud monitoring, and follow strict timelines for settlement of merchant funds.

Aurionpro’s entry into this space builds on more than two decades of technology expertise. Established in 1997, Aurionpro has worked extensively with retail and wholesale banks, public transit operators, and smart city projects, delivering integrated platforms for fare collection, ticketing, and customer service. Over the past decade, it has steadily expanded into fintech-driven products, including transaction processing, enterprise payments, and digital onboarding solutions.

What can merchants and SMEs expect from the launch of AuroPay?

AuroPay is being positioned as a one-stop e-payments platform offering multiple acceptance channels, including credit and debit cards, net banking, Unified Payments Interface (UPI), and digital wallets. For merchants, this translates into simplified collections, faster reconciliation, and potentially quicker settlement cycles within RBI-mandated timelines.

The platform will also aim to streamline the onboarding process for SMEs, many of which have faced challenges integrating payment systems due to cost, complexity, or compliance hurdles. By offering competitive transaction pricing, secure infrastructure, and merchant support aligned with RBI’s grievance redressal norms, AuroPay could help smaller businesses accelerate their transition to digital commerce.

Industry observers note that merchants increasingly prefer working with licensed aggregators because they provide an added layer of trust and regulatory oversight. Compliance with RBI norms on data storage, payment security standards, and anti-money laundering checks offers assurance for both merchants and end-customers.

How does RBI’s licensing framework ensure security and compliance?

The RBI introduced formal licensing requirements for payment aggregators in 2020 to bring unregulated entities under a clear compliance framework. As per the guidelines, companies applying for the license must maintain a minimum net worth of ₹15 crore at the time of application, increasing to ₹25 crore within three years. They must also implement Payment Card Industry Data Security Standard (PCI-DSS) compliance, two-factor authentication, and detailed merchant vetting processes.

In addition to security protocols, RBI mandates that licensed aggregators settle funds to merchants within a fixed period—typically one day for transactions captured before the cut-off time—reducing settlement risk. This ensures greater liquidity and operational certainty for businesses using aggregator services.

Aurionpro Payments’ approval indicates it has met these regulatory thresholds, giving it the same operational standing as other authorized players in the market.

How does this approval fit into India’s digital payments growth story?

India’s digital payments sector has expanded at a rapid pace over the last five years, driven by the widespread adoption of UPI, increased smartphone penetration, and policy initiatives under the Digital India programme. Data from the National Payments Corporation of India (NPCI) showed UPI transactions crossing ₹14 lakh crore in monthly value earlier in 2024, reflecting both consumer and merchant adoption.

The rise of e-commerce has also boosted demand for reliable, cost-efficient payment gateways. Licensed payment aggregators, by operating under RBI oversight, have become an integral part of the digital commerce supply chain, providing essential infrastructure for online transactions while mitigating fraud and settlement delays.

In this environment, Aurionpro Payments’ AuroPay launch comes at a time when competition is intensifying but opportunities remain abundant—particularly in Tier-II and Tier-III cities where digital adoption is accelerating but merchant penetration for advanced payment solutions is still developing.

How does Aurionpro compare with other RBI-licensed payment aggregators?

As of mid-2024, RBI has granted licenses to several prominent players in the space, including Razorpay, Cashfree, and PayU India. Each offers a suite of payment solutions, merchant dashboards, and APIs to integrate with e-commerce platforms.

Aurionpro Payments will enter the market leveraging Aurionpro’s long-standing technology partnerships with banks and enterprises. This existing network could enable AuroPay to offer tailored solutions, such as deep integration with corporate banking systems or specialized payment flows for sectors like transportation, government services, or utilities—areas where Aurionpro already has a presence.

While larger incumbents enjoy scale advantages, new entrants like Aurionpro can differentiate through niche service offerings, vertical-specific payment products, and potentially more agile customer support models.

What has Aurionpro Payments’ leadership said about the approval?

Balkrishna Pangam, Chief Executive Officer of Aurionpro Payment Solutions, has expressed gratitude toward the Reserve Bank of India for granting the license. He noted that the company intends to commence operations swiftly and sees AuroPay as a platform that will contribute meaningfully to India’s digital transformation journey. His remarks emphasize innovation, compliance, and the role of payments in enabling economic growth.

Why is this regulatory milestone strategically important in June 2024?

Before this authorization, Aurionpro Payments could provide the technology backbone for payment processing but could not operate as a principal aggregator under RBI rules. The new license not only allows the company to manage the entire payment flow—from merchant onboarding to settlement—but also to build brand equity in a highly competitive and trust-driven industry.

With AuroPay, Aurionpro Payments can directly tap into merchant transaction volumes, create recurring revenue streams from processing fees, and bundle payments with other Aurionpro fintech offerings. The timing is significant given the sustained growth in digital transactions and the increasing importance of compliance-driven trust in the payments industry.