PayU India and Paytm get first in-principle approvals to function as consumer payment gateways

Gurgaon-based PayU India and Noida-based Paytm have got themselves the first in-principle approvals for operating as a Bharat Bill Payments Operating Unit (BBPOU), which would allow them to offer interoperable bill payment service to their consumers, who will now be able to pay all their bills anytime and anywhere under the Bharat Bill Payment System (BBPS). Both the companies, meanwhile, will be providing them platforms to offer these services.

Vijay Shekhar Sharma, founder of Paytm, said that RBI has laid some conditions so that the final authorisation can be approved.

"We're planning to launch the payments unit by August-September, alongside our payments bank," he added.
Companies with in-principle approvals need to meet two conditions, one being a certification from National Payment Corporation of India (NPCI) for adherence to BBPS standards and the other being system readiness. Other than this, a system audit also needs to be conducted so that the hardware, software, critical applications and security can be evaluated.

It was in November 2015 that RBI had granted in-principal approval to NPCI, so that it could function as Bharat Bill Payment Central Unit.

Shailaz Nag, co-founder of PayU India, said that the company's technology aided with the license will be capable to offer a cost effective and efficient alternative to the already existing payment options, which would definitely increase consumer convenience.