All You Need to Know About Payment Aggregators in 2023

Online Payments are a must to be secured by the best payment aggregator in India in 2023. Online money transfers and reimbursements have become prevalent. 

Payment Aggregator in India

Most of the people today are not familiar with the term Payment Aggregator. That's why, Before moving ahead, you should understand what a Payment Aggregator is and what are their responsibilities when it comes to online payment. Prior to going ahead with the definition, let us understand about the entities included for online transactions. 

Is online payment direct or does it involve several entities? If so, whose organizations are involved?

Yes, Online payment is a 3-4 second procedure but it includes many entities to process the payment from the buyer to the seller.  These payments are supported by a number of processors or entities that act as a link between purchasers and sellers of goods and services (merchants) inside the online world. 

The following are the majority of these mediators:

• Banks
• Payment Gateway Solutions
• Merchant Aggregators who are not banks
• Instruments/Payment Options
• Payment Gateway Operations are supported by technology service providers.
• Marketplaces for E-Commerce

Definition of Payment Aggregator

A payment aggregator is a type of payment service provider that acts as a middleman for businesses and customers during the payment process. With a single integration, it combines and performs online transactions on the behalf of multiple businesses.

Why Do Companies Use Payment Aggregators?

To fulfill their payment commitments, customers can use a variety of payment instruments, which Payment Aggregators make possible for e-commerce websites, mobile apps, and merchants without the need for the latter to develop their own payment integration system.

How does Payment Aggregator Work?

Payment Aggregators take client payments, aggregate them, and then transmit them to merchants after a predetermined time period by deducting the pre-decided percentage of amount. Payment aggregators may also provide services such as the generation of settlements by netting money received by merchants accepted by them. These companies aid in the processing and completion of payments by acting as a link between consumers on one side and merchants on the other.

What is Netting in Payment Aggregation?

Netting is a risk-reduction strategy in financial contracts that entails linking or aggregating numerous financial obligations to arrive at the net responsibility amount. Netting is a method of reducing the settlement, credit, and other financial risks of multiple parties.

Who Can Become a Payment Aggregator?

Only businesses licensed by the RBI are permitted to purchase and supply payment services to merchants under the payment aggregator framework, which come into force in March 2020. Companies seeking a payment aggregator license must meet specific conditions imposed by the RBI, such as a minimum net worth, merchant onboarding, fund settlement schedules, Escrow Account administration, IT security, and so on. They become liable to get the Payment Aggregator License and offer top payment solutions to all big and small businesses.

Payment Aggregator Escrow Account 

An escrow account is a momentary formal agreement between two participants in a transaction where a third party holds the financial payment. The third party is usually a bank or an escrow agent/agency/company/firm. The usage of an escrow account reduces the possibility of inability to pay.

Benefits of Payment Aggregation

Payment aggregation has some major advantages to take into account:

Setup is Simple

To begin, payment aggregator services are simple to set up for real-time payment processing. Credit checks, PCI compliance checks, a personal guarantee, and additional processes may be required while opening a merchant account. It all adds up to a time-consuming application process. Using a payment aggregator reduces administrative burdens, allowing you to focus on selling.

Read in Detail - Payment Gateway & Payment Processor – A Complete Guide

Payment Processing that Is More Efficient

An aggregator company also speeds up payment processing. Small businesses that rely on consistent cash flow benefit from knowing that their payments are processed and deposited into their accounts within a few days.

Fee Structures Are Simple

While some payment processors have complex fee structures, payment aggregators are usually transparent and do not bind you to a fixed contract. This allows us the option of switching to a different payment method if desired.

Payment Aggregator in India 2023

LetsPe is the top Aggregator in India at present. LetsPe is a registered organization that provides all the online fund transaction related payment aggregator. The reason for them to be the perfect choice for you is that it takes minimum charges for the services, Multiple payment options are there in it, it has minimum onboarding time, it can integrate easily with Ecommerce platforms, weekend settlements are available, no set-up & maintenance fee, and it settles the payment instantly without any trouble.

Conclusion 

All You Need to Know About Payment Aggregators in 2023 is written above in this article. You can connect with LetsPe, the perfect payment aggregators of the market in order to get the brilliant online fund transfer solutions.