Govt puts payment aggregators in a bind

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Marred by wafer-thin margins and zero merchant discount rate (MDR) on UPI, payment aggregators such as Razorpay, Paytm, PhonePe and Cashfree are now burdened with re-KYC of all merchants under the new RBI Master Direction on Payment Aggregators (September 2025).

Under the new guidelines, PAs must complete re-KYC of all merchants by December 2026. This requires extensive manual effort to re-conduct KYC without disrupting business. For new merchant onboarding, extended KYC is mandatory, and the entire due diligence responsibility lies with the PAs. 



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Govt puts payment aggregators in a bind


Marred by wafer-thin margins and zero merchant discount rate (MDR) on UPI, payment aggregators such as Razorpay, Paytm, PhonePe and Cashfree are now burdened with re-KYC of all merchants under the new RBI Master Direction on Payment Aggregators (September 2025).

Under the new guidelines, PAs must complete re-KYC of all merchants by December 2026. This requires extensive manual effort to re-conduct KYC without disrupting business. For new merchant onboarding, extended KYC is mandatory, and the entire due diligence responsibility lies with the PAs. 



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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