Fintech startup Cred recently secured preliminary approval from the Reserve Bank of India ( RBI ) for its payment aggregation ( PA ) business, a significant milestone on the path to final approval. This approval paves the way for Cred, based in Bengaluru, to venture into the merchant payments domain, complementing its existing credit card bill payment platform.
Upon receiving final approval, Cred will gain autonomy in settling and transferring funds, offering merchant payment services to online sellers. The RBI’s draft guidelines for payment aggregators emphasize robust know-your-customer ( KYC ) protocols for merchants.
Cred also plans to expand into offline payments and introduce QR code-based ‘scan and pay’ options at retail outlets, leveraging its existing UPI payments infrastructure.
Despite being the fourth largest UPI payments application, Cred has rapidly expanded its consumer payments segment and aims for a robust presence across payment, shopping, and credit spheres. This strategic move aligns with Cred’s vision to offer comprehensive solutions to consumers and businesses alike in the digital payments landscape.
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