Next-Gen Payments: More Fintechs Will Serve Digital Business Expansion

India's e-commerce sector is undergoing significant evolution, with a projected $160 bn surge by 2028. Amidst this growth, RBI's nod for fintechs to operate as payment aggregators signal fintech growth, driving financial innovation in the digital economy.

Swati Dayal
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Fintech Solutions

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India's e-commerce sector is projected to soar beyond USD 160 billion by 2028, surging from an estimated USD 57–60 billion in 2023. A report on "How India Shops Online 2023" by Bain and Co., reveals the sector's consistent annual expansion of USD 8–12 billion since 2020. This growth trajectory is attributed to the accelerated adoption of online shopping following the COVID-19 pandemic, indicating a robust and sustained rise in consumer spending on e-commerce in the country.


With the growing online shoppers, the e-commerce landscape is poised for unprecedented growth in the coming years. This surge in activity presents both immense opportunities and formidable challenges for the small businesses. 

Fintechs For E-Commerce: Need of the Hour

Managing working capital and inventory becomes a complex task, creating hurdles for businesses looking to capitalize on the season's potential. The businesses require access to working capital during this period, characterized by heightened demands for additional inventory, labour, and marketing. To address this critical challenge, technology-enabled financial service companies are stepping in, offering supply-chain financing and tailored working capital products.


By reducing dependence on traditional lending channels, these fintech solutions provide businesses with increased financial autonomy and flexibility, crucial for achieving growth during the festive season's uptick in sales and revenue.

Amidst this growing need, country’s apex bank has given nod to few fintech players to function as a payment aggregator.

The fintech startup Enkash has received the nod from the Reserve Bank of India (RBI) to function as a payment aggregator, operating under the brand name Olympus. This regulatory approval will enable the fintech to maintaining high regulatory standards and underlining its crucial role in advancing the financial technology industry.


Enkash: Empowering Businesses through Spend Management

Enkash, known for its spend management platform, empowers businesses by automating payables, digitizing receivables, and managing expenses. Spend management involves the meticulous control, optimization, and tracking of an organization’s expenses. This process is designed to enhance efficiency, reduce costs, and maximize overall financial performance.

Commenting on this development, Yadvendra Tyagi, Co-founder of EnKash, said, “This affirms our unwavering commitment to maintaining regulatory standards and highlights the significance of our role in advancing the industry."

Tyagi further emphasized, "The milestone also underscores our commitment to providing seamless, innovative, and reliable payment solutions, further solidifying our position as a trusted partner for businesses looking to thrive in the digital economy."


With Enkash's approval to operate as a payment aggregator, the fintech landscape in India is witnessing a transformative phase. As Enkash and other recognized players pave the way for seamless, innovative, and reliable payment solutions, businesses are poised to thrive in the digital economy. The RBI's strategic granting of payment aggregator licenses marks a positive step toward fostering financial innovation and growth in the rapidly evolving fintech sector.

RBI's Approval For Several Fintechs

EnKash is not alone in this achievement, as several other fintech startups, including Cashfree Payments, OPEN, and Razorpay, have also been granted payment aggregator licenses by the RBI. This significant development occurred after more than a year of some fintechs reportedly facing a halt in merchant onboarding until they received the final regulatory approval following the in-principle approval to operate as payment aggregators.


Anish Achuthan, Co-founder and CEO of OPEN, highlighted the approval as a recognition of their dedication to regulatory standards. He stated, "This approval not only acknowledges our dedication to regulatory standards but also signifies a significant leap in fortifying our commitment to SMEs."

He further added, "The enhanced capabilities will bolster our financial automation platforms, providing SMEs with advanced tools to streamline their financial operations and thrive in the digital era."

Cashfree Payments, another beneficiary of the RBI's approval, is already onboarding new merchants on its payment gateway

A spokesperson for the company expressed excitement about the new phase in their journey, stating, "We are very excited about this new phase of our journey, where we continue to drive exponential growth and retain our market leadership as the preferred aggregator in the payments space."


The RBI's strategic approvals will pave the way for a more innovative, resilient, and growth-oriented fintech sector.

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