Months after receiving the ultimate approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator, fintech firm Decentro announced the launch of a new payment stack, Flow 2.0. The organization has implemented fintech products, including collections on the Unified Payments Interface (UPI), and it intends to implement recurring payments within the next few weeks.
Decentro Launches Flow 2.0: Revolutionizing the Future of Online Payments
After obtaining final approval to operate as an online payment aggregator in February of this year, the company has launched its most recent solutions. The company will be able to regulate merchant settlements and other transaction processes as a result of the banking regulator’s license. Flow 2.0 will allow enterprises to execute transactions within frameworks that have been approved by the Reserve Bank of India. Presently, the organization serves clients including Volopay, Kodo, and Shiprocket.
The online payment aggregator license has been granted to 22 companies this year, including Decentro. The company will now be directly subject to the RBI’s compliance obligations upon receiving approval from the regulator. In 2022, Rapyd Ventures, Leonis VC, and Uncorrelated Ventures contributed $4.7 million to the company’s Series A funding round.
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It is supported by Indian angel investors, including Kunal Shah of Cred, Lalit Keshre, co-founder and CEO of Groww, and Beerud Sheth, co-founder and CEO of Gupshup, among others. The Bengaluru-based fintech infrastructure platform primarily targets large merchants and onboards approximately 40 of these entities on a monthly basis.
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“The key use cases for UPI collections will be e-commerce, logistics, last-minute delivery, hyperlocal commerce, gaming, edtech, among others. We will have recurring payments come out by 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 chief executive officer (CEO), Decentro.
“In simple terms, till now, we were a payment gateway. A payment gateway is somebody who is only handling the technology, but not the flow of money. As a payment aggregator, we can control that money flow into our escrow account and settle it with the merchant directly,” Taneja added. “Our strategy is to have maybe a couple of hundred, or less than a hundred (merchants) on a monthly basis. The ones we take on board tend to be mid-sized or large merchants,” he said.
Meanwhile, merchants will see a faster onboarding process with it being completed in under two days. Taneja elucidated that with the payment aggregator license, the company may look to reduce the time to less than one working day in the future. “The whole onboarding flow is in our control. Unlike in the old payment gateway mode where it was dependent on the bank. That is the benefit,” he said.
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