Shares of Infibeam Avenues shot up 19.72% on Friday’s early trades to reach a high of ₹ 17.30 on the National Stock Exchange. This happened after the company received a payment aggregator license from the Reserve Bank of India.
Infibeam Avenues is a fintech company that provides software development services, maintenance, web development, payment gateway services, e-commerce and other ancillary services. It is one of the largest payment solutions providers (DSP) in revenue and market share.
The RBI issued a framework for payment aggregators in March. Under this framework, it is mandatory for payment aggregators to obtain a licence for acquiring merchants and provide them with digital payment acceptance solutions. This will help the apex bank to ensure the safety of merchants and consumers.
Post market hours on Thursday, Infibeam Avenues informed the bourses that it has received a licence which permits it to operate as a payment aggregator and provide digital payment services to any merchant online or offline across the country.
The company added that it will get a substantial boost to further expand its reach in multiple business segments. Further, this approval from the apex bank will reiterate its flagship brand CCAvenue’s position as one of India’s most experienced and secured digital payment gateways.
“With regulators entrusting faith in us, we promise to ourselves to make all Indian kiranas and merchants Digital, Credible & Bankable(DCB),” said Mr Vishal Mehta, Managing Director, Infibeam Avenues Ltd.
A few other players who received RBI’s in-principal approval for the licence include Razorpay, Pine Labs, Stripe, Easebuzz, MSwipe, NTT Data Payment Services, Innoviti and 1Pay Mobileware.
Infibeam Avenues processed transactions worth ₹ 2.8 trillion (US$ 37 billion) in FY22. It has more than 5 million clients across digital payments and enterprise software platforms. Its clientele includes merchants, enterprises, corporations, governments and financial institutions in both Indian as well as international markets.
Written by Simran Bafna
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