The recent milestone of Paysharp in securing final approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA) signals a promising shift in the fintech arena of India. The Chennai-based startup is now among an elite group of 36 RBI-approved payment aggregators. It is standing alongside established players like Razorpay, Cashfree and Stripe.
The space is basically dominated by percentage-based fees and flat fee structure of Paysharp offers an enticing proposition for businesses. It is helpful to those companies which are handling high volumes of transactions. It is not a secret that businesses often struggle with the unpredictability of percentage-based fees and particularly when transaction volumes rise.
Paysharp is also focused on non-card-based solutions and this makes it again standout. It is prioritizing on Unified Payments Interface (UPI) and virtual account-based collections for NEFT, IMPS and RTGS transactions. UPI is gradually becoming the dominant mode of digital transactions in India and especially among small and medium-sized businesses (SMBs) and emerging ecommerce ventures.
Paysharp simultaneously offers a suite of products like Link Payment and Payment Pages. This reflects an innovation-driven strategy of the startup. The ability to send payment links via WhatsApp, SMS or email caters perfectly to the digital-first approach that businesses now adopt and particularly in the B2B as well as ecommerce sectors.
The RBI approval will undoubtedly boost credibility to the company and help it scale operations. However, the real question is whether its model will challenge the dominance of major players like Razorpay.
Well, the thoughtful balance of innovation, cost-efficiency and strategic positioning makes Paysharp a startup worth watching in a crowded payment space. The RBI approval is just the beginning.
