With the approval of the PA, fintech company Decentro is launching a new payment stack
Fintech firm Decentro announced the launch of a new payments stack, Flow 2.0, months after the company got the final nod from the Reserve Bank of India (RBI) to operate as an online payments aggregator.
The company has launched fintech products such as direct debits on Unified Payments Interface (UPI), and will introduce recurring payments in the coming weeks.
“Key use cases for UPI collections will include e-commerce, logistics, last-minute delivery, hyper-local commerce, gaming and edtech. We will receive recurring payments from early to mid-June. This would include E-National Automated Clearing House (E-NACH), setting up the mandates with use cases of subscriptions, investments, credit,” said Rohit Taneja, co-founder and CEO of Decentro, in an interactive conversation. with Company Standard.
The launch of the latest solutions by the company comes after the company received final approval to operate as an online payment aggregator in February this year.
The banking regulator’s license will allow the company to gain control over, among other things, the settlement of transactions with merchants.
“Simply put, until now we have been a payment gateway. A payment gateway is someone who only manages the technology, but not the flow of funds. As a payment aggregator, we can control the flow of funds into our escrow account and settle it directly with the merchant,” Taneja added.
The Bengaluru-based fintech infrastructure platform focuses on large merchants and onboards around 40 such entities every month.
“Our strategy is to have maybe a few hundred, or less than a hundred (merchants) every month. Those we onboard are usually medium or large traders,” he said.
Meanwhile, sellers will see a faster onboarding process, completed in less than two days. Taneja explained that with the payment aggregator license, the company may want to reduce the time to less than one business day in the future.
“The entire onboarding flow is in our control. Unlike the old payment gateway mode where it was dependent on the bank. That’s the advantage,” he says.
Flow 2.0 will enable enterprises to transact under RBI-approved frameworks. Currently, the company focuses on customers such as Shiprocket, Kodo and Volopay.
Decentro is one of 22 companies that received the online payment aggregator license this year. Regulatory approval means that the company now comes under the direct supervision of the RBI for compliance.
The company raised $4.7 million in a Series A funding round in 2022 from Rapyd Ventures, Leonis VC and Uncorrelated Ventures.
It is backed by Indian angel investors including names like Cred’s Kunal Shah, Lalit Keshre, co-founder and CEO, Groww, Beerud Sheth, co-founder and CEO, Gupshup, among others.
First print: May 24, 2024 | 1:57 am IST