RBI approves MobiKwik’s Zaakpay as online payment aggregator

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RBI approves MobiKwik’s Zaakpay as online payment aggregator, signaling a landmark moment for India’s rapidly evolving fintech landscape. Zaakpay, a wholly owned subsidiary of publicly listed MobiKwik, has received the coveted Certificate of Authorisation from the Reserve Bank of India (RBI) under the Payment and Settlement Systems Act, 2007. This authorization officially allows Zaakpay to operate as a Payment Aggregator (PA), a move that significantly boosts MobiKwik’s position in the B2B digital payments sector.

MobiKwik, founded by Bipin Preet Singh and Upasana Taku, has long been a pioneer in India’s digital finance industry. With this new license, the company can now offer end-to-end online payment services through Zaakpay, catering to enterprises across sectors such as transit, healthcare, digital lending, and e-commerce. Zaakpay already provides robust payment acceptance solutions, including credit/debit cards, UPI, wallets, net banking, and pay-later options.

Over the past few years, Zaakpay has taken significant strides to reinvent its payment gateway platform. From launching credit and debit card EMI options at checkout for online retailers to rolling out instant daily settlements for enterprise merchants, the brand has stayed focused on innovation. One of its standout initiatives in 2024 includes a strategic partnership with Meta (WhatsApp for Business) to provide conversational payments to large-scale clients in transit and healthcare.

This RBI authorization not only expands Zaakpay’s operational scope but also reinforces MobiKwik’s broader goal of capturing a substantial share in India’s digital B2B payments sector. The approval is also expected to create ripple effects across the fintech ecosystem by encouraging other startups to seek regulatory compliance, scale their solutions, and deepen India’s digital economy.

This move stands as a testament to the commitment of Indian fintech startups to regulatory integrity, customer trust, and digital innovation.

1. Understanding Zaakpay’s Business Model

1.1 Company Overview and Services

Zaakpay operates as a B2B payment solutions provider that empowers online businesses with the tools to accept digital payments seamlessly. From enabling transactions through cards and UPI to offering pay-later and EMI options, Zaakpay supports a comprehensive range of payment modes. Its solutions cater to several sectors including transit, healthcare, digital commerce, bill payments, and digital lending.

The service provides APIs and SDKs that online platforms can integrate into their websites or mobile applications. The main aim is to simplify the checkout process, enhance customer experience, and ensure high transaction success rates.

1.2 Revenue Model

MobiKwik’s Zaakpay revenue model is straightforward yet scalable. It earns through merchant discount rates (MDR), setup fees, and value-added services like fraud detection, analytics, and instant settlements. By offering high-frequency transactional services to businesses, it generates recurring revenue while keeping operational overheads minimal.

2. MobiKwik: The Parent Company’s Journey

2.1 Founders and Background

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik began as a digital wallet platform and later diversified into financial services including credit, insurance, and investment. Bipin, an IIT Delhi and IIM Ahmedabad alumnus, and Upasana, who holds a background in fintech consulting, aimed to provide inclusive financial solutions for India’s underserved markets.

MobiKwik is now one of India’s leading digital financial platforms and went public in 2021. It has since grown both its consumer and business arms significantly.

2.2 Zaakpay: A Strategic Arm

Zaakpay was conceptualized as MobiKwik’s gateway into the B2B payments domain. Over the past couple of years, Zaakpay has quietly scaled up with enterprise-grade offerings and strategic partnerships. The 2024 integration with Meta’s WhatsApp for Business stands as a milestone for conversational commerce in India.

3. RBI Approval: What It Means for Zaakpay

3.1 The Regulatory Framework

RBI Payment Aggregator license is governed by the Payment and Settlement Systems Act, 2007. With the official certificate, Zaakpay is now authorized to provide payment aggregation services independently. This is critical because all payment aggregators must comply with strict regulatory requirements related to KYC norms, fund handling, transaction security, and dispute resolution.

3.2 Strategic Importance for MobiKwik

With RBI’s nod, Zaakpay can now accelerate its merchant acquisition efforts, scale its operations, and directly compete with established payment gateways like Razorpay and PayU. According to Bipin Preet Singh, the approval underscores their longstanding focus on regulatory compliance, security, and innovation in digital payments.

4. Recent Innovations and Market Position

4.1 Product Innovations

Zaakpay introduced Affordability Checkout features in early 2024, allowing users to pay using debit or credit card EMIs. The company also rolled out Instant Daily Settlements to help merchants receive payments faster. These features not only enhanced the user experience but also empowered businesses to scale more effectively.

4.2 Strategic Partnerships

One of Zaakpay’s key collaborations was with Meta to launch in-chat payments via WhatsApp for Business. This allowed enterprises in transit and healthcare to accept payments within chat windows, offering a more interactive customer journey.

5. Implications for India’s Digital Payment Ecosystem

5.1 Sector-Wide Impact

The RBI approval is expected to set a precedent for emerging fintech startups aiming for regulatory validation. With over 600 million internet users and a fast-growing digital economy, India provides fertile ground for innovative financial services. The authorization will encourage other players to seek licensing and build more secure and scalable platforms.

5.2 Encouragement for B2B Payment Startups

The decision could act as a catalyst for B2B-focused fintechs to step out of the shadows of B2C-dominated narratives. By enabling real-time settlements, conversational payments, and flexible checkout options, Zaakpay shows how digital payments can evolve to meet business-specific needs.

6. Learning for Startups and Entrepreneurs

1. Regulatory compliance is not just a formality but a strategic advantage.
2. Innovation in financial products must align with business needs, such as daily settlements or in-chat payments.
3. Strategic partnerships, like that with Meta, can fast-track product adoption.
4. Building trust through secure and simple payment solutions is key to scaling.
5. A B2B focus can be equally lucrative in the fintech space when executed with precision.

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