Infibeam Avenues surged 12.58% to Rs 16.29 after the company said it has received "in-principle" approval from the Reserve Bank of India (RBI) to operate as a payment aggregator.
The latest authorisation permits Infibeam to operate as a payment aggregator to provide digital payments services to any merchant(s) online or offline across the country.The positive nod from RBI will reiterate Infibeam's flagship brand CCAvenue's position as one of India's most experienced and secured digital payment gateways.
In March 2022, RBI had issued a framework for payment aggregators in India. Under this framework, payment aggregators are mandated to obtain a license for acquiring merchants and provide them with digital payments acceptance solutions. This was done primarily to ensure the safety of merchants and consumers. Payment aggregator also provides an easy and affordable way of accepting payments to help small business adapt to digital ways in a streamlined manner.
As a leading digital payment player, Infibeam has the highest portfolio of payment options for merchants with over 200 plus multi-currency payment options in India alone with run rate of 4 lakh crore annually across the platform. Currently, 6.4 million merchants are on Infibeam's platform (double from last year), which increased at an average 8,000 per day in Q1'23 and could grow significantly due to the mass adoption of digitalization.
In March 2022, RBI had issued a framework for payment aggregators in India. Under this framework, payment aggregators are mandated to obtain a license for acquiring merchants and provide them with digital payments acceptance solutions. This was done primarily to ensure the safety of merchants and consumers. Payment aggregator also provides an easy and affordable way of accepting payments to help small business adapt to digital ways in a streamlined manner.
Vishal Mehta, managing director, Infibeam Avenues, said, "It's a vital development as it energises our vision and mission to build India's biggest digital payment infrastructure company. Our flagship payments brand CCAvenue is already one of the top payment gateway brand in India, delivering superior digital products & services to majority of the financial institutions, SMEs, MSMEs and merchants. With regulators entrusting faith in us, we promise to ourselves to make all Indian kiranas and merchants Digital, Credible & Bankable (DCB). As more merchants transact digitally, the more they gain financial credibility and more they will be bankable for banks to offer loans, as this boosts their business and the nation's economy."
Infibeam Avenues is one of the leading global financial technology (fintech) company offering comprehensive digital payment solutions and enterprise software platforms to businesses and governments across industry verticals. The company's payment infrastructure solution includes acquiring and issuing solutions and offering infrastructure for banks.
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The company's consolidated net profit climbed 68.8% to Rs 23.74 crore on 93.3% surge in net sales to Rs 418.31 crore in Q1 FY23 over Q1 FY22.
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