IRCTC Launches Payment Aggregator Business to Expand Fintech Footprint

IRCTC Launches Payment Aggregator Business to Expand Fintech Footprint

As per the Indian Railway Catering and Tourism Corporation  (IRCTC) report with the stock exchange, the company has added a new subsidiary that emphasises on payment aggregator business. 

The report comes months after the company started the process to achieve a payment aggregator licence with the Reserve Bank of India (RBI). After that, the company also launched iPay - an in-house payment gateway. iPay adding new layers to the payment process allows users to book tickets using autopay, debit card, credit card, and net banking, among others. 

In an earning call on August 2023, IRCTC Managing Director and Chairman Seema Kumar had said “that during this quarter approximately 1.54 crores payment transactions were handled on the iPay platform. Over the previous year, it increased by 12.94% and over the year it increased by 36%. She also added that the company is in the process of developing a subsidiary for the iPay licence. Moreover, as recommended by the RBI, the Payment Aggregator License is in the process of getting licenced by the RBI. 

The railway ticketing platform expanded its fintech capabilities with deeper synergy with partner merchants, mostly diversifying products and services on its platform, after being supported by the payment aggregator business. In 2020, the RBI introduced a new licensing regime for payment gateways. This move helps for better compliance and regulations in the fintech industry. Some companies have received the PA licence, including fintech firms like Razorpay, Cashfree and Decentro. 

Thought of YFS on IRCTC’s Move

Your First Startup (YFS) reckons the introduction of the payment aggregator business by IRCTC not only helps expand the railway ticketing platform’s reach but also helps travellers seeking such a convenient payment platform.