A Payment Gateway license cost is a matter that everyone is most concerned about. However, their concerns extend to only the license fees. They forget about the inner intricacies of the process, the requirements, and the infrastructure to establish a payment gateway business in India.
What is the price of starting a Payment gateway in India? Does it only entail the license fee that you pay to the Reserve Bank of India so that it processes your application? Or, are there other steps within the process that also require you to lighten your pocket?
In this article, we are going to take a look into the real nature of the cost of Payment Gateway License in India. And we do so, you will get a clearer picture of the business of payment gateway aggregators.
Meeting the eligibility criteria
Here comes the first part of the payment gateway license fees. It is the price that you pay to meet the eligibility criteria.
The Reserve Bank of India has set forth the following points to decide who deserves to become a payment aggregator in India:
- The applicant’s net worth should be INR 15 Crore.
- That net worth should increase by INR 25 Crore after three years of operation.
- The payment gateway should have PCI DSS certification.
- And, the applicant should be a company.
Incorporating a Company
While we have put the company incorporation at the last point, the truth is it is the first point to consider. Only a company has the permit to apply for the payment gateway license in India. The process is as follows:
- Furnishing the documents
- Getting the DSC and the DIN
- Drafting the MOA and the AOA
- Putting the application details on a stamp paper
- Submitting the application online via the MCA portal.
The government of India has removed any cost from the company registration process. However, the stamp paper will cost you. How much? It would depend upon the state in which you are incorporating your payment gateway business. That being said, generally, the stamp paper might cost anywhere around 10 to 15% of the net worth of your company.
That takes us to the net worth requirement.
Meeting the net worth criteria
The applicant company should be at least worth INR 15 Crore. For a startup, that’s a tad bit too much. However, the Reserve Bank of India wants to keep the non-serious players out of the field. Therefore, the requirement is justified.
You can consider it to be a major component of the payment gateway license fees.
Business plan to increase the net worth of the company
You’re a smart individual if you’re thinking about starting a payment gateway in India. We thus do not doubt that you’d come up with a business plan to increase your net worth to INR 25 crores after operating for three years.
That being said, not all plans work. The only way for the plan to work per this eligibility criterion is to let a business expert draft a plan for you. Read More: Media Gateway Approval
Obtaining the PCI DSS certification
Without approval from the Payment Card Industry Data Security Standard (PCI DSS), RBI won’t even look at your application form. How much would this approval cost you? It will depend upon how well you have presented the source code of your payment gateway. Typically, your payment gateway should:
- Have multiple layers of security encryptions
- Protect the data of the users
- Ensure a smooth transaction
- And, have a high-reliability rating
To meet these requirements, you will need to pay a hefty cost to the developers.
Cost of filing the application
Finally comes the cost of filling the application form. The payment gateway license cost of the application’s processing is not given on the official website. But don’t worry, once you start the process of getting the license under the supervision of an expert, you will know all the details you need.
The cost of starting a payment gateway in India doesn’t come from a single source. From the time to start creating your platform to the time you fill the application form for the payment aggregator license, you must pay a different fee.
For more details, contact Registrationwala.
What is the payment gateway license cost? Check out this blog that covers the various aspects of the payment gateway license fees in India. Contact us for more info.