According to the company’s statement with the stock exchange, the Indian Railway Catering and Tourism Corporation (IRCTC) has created a new subsidiary that concentrates on the payment aggregator industry.
The revelation was made several months after the business started the application process to get a Reserve Bank of India (RBI) payment aggregator license. At that time, IRCTC also introduced iPay, an internal payment gateway. Users can book tickets using a variety of payment methods, including autopay, debit card, credit card, and net banking, thanks to the gateway, which adds another layer to the payment process.
1.54 crores of payment transactions have been processed on the iPay platform so far this quarter. It has climbed by 36% over the past year and by 12.94% over the preceding quarter. During an August 2023 earnings call, IRCTC managing director and chairman Seema Kumar stated, “We are in the process of forming a subsidiary for this iPay license. We are in the process of getting this license from RBI for the payment aggregator license.”
The railway ticketing platform will probably be able to broaden services and goods offered on its platform and enhance its fintech skills through deeper synergy with partner merchants thanks to the payment aggregator business.
In 2020, the RBI implemented a new licensing system for payment gateways. The goal of the action was to improve fintech industry compliance and regulations.
“PAs are businesses that allow e-commerce sites and merchants to accept numerous payment instruments from clients in order to complete their payment responsibilities without merchants having to establish their own payment integration system. PAs let retailers to connect with acquirers. They accept payments from clients, pool them, and then transmit them to merchants over a set length of time,” according to the RBI’s original notification.
Numerous businesses have obtained the PA license since then. Fintech companies such as Cashfree, Decentro, and Razorpay are included in this.
