Start a payment gateway by getting payment gateway certification

Author: Dr Sna Clinic

Payment gateway for India is an untapped well of business potential. Think about it. When you go online to pay your bills electronically, you see only a handful of payment gateways from Bill Desk to PayTm. Others are simply put in place by banks on their own. They are among the few who have got the payment gateway licensebecause of two reasons:

  1. They are financially capable of handling the business.
  2. They are capable of protecting the confidential information during the electronic transactions.

But it’s not so difficult these days to meet the two requirements, especially if you’re financially capable and have a technical background. And because the domain doesn’t have much competition right now, you can get early and develop a strong foundation.

Thus, you too can start a payment gateway by getting payment gateway certification.

How would you define a payment gateway?

Without going into technical details, a payment gateway is a technology that allows secure financial transaction through an electronic medium. Everything from your ATM cards to your online payment wallets rely on a good payment gateway. The Reserve Bank of India issues the payment gateway registration so that it remarkably does its job of:

  1. Establishing a secure connection between the payer and the one who is receiving the payment, and
  2. Encrypting the data so that no one, including the payment gateway administrators can take a peek into the confidential user information.
  3. Letting the financial transaction go through without any issue.

In order to only give out the RBI payment gateway license to legitimate parties, RBI has made the payment gateway registration process quite complex.

The complex process of getting the payment gateway registration in India

Let’s now discuss, step by step, the payment gateway registration process.

  1. Make sure that you have a strong financial backbone to support the business: Your net worth should be at least INR 15 Crore to apply for the license. If it’s not, one would recommend to get funds from an investor. However, it’s always better to bootstrap – come up with the money on your own - when you’re trying to come up in business.
  2. Create a functional business plan: As per the eligibility requirement for payment gateway certificate, your business must increase its net worth to INR 25 Crore within the first three years of operations. It can’t happen if you don’t have a concrete and functional business plan.
  3. Incorporate your company: After you’ve developed the technology, have acquired the fund and have designed the business plan, get the approval from PCI DSS. It’s an independent body formed through partnership of major credit card companies. Once you have the PCI DSS certification, you can go ahead with the steps below.

4. Draft the online payment gateway application: The details you’re required to fill in the application for online payment gateway registration are complex. One error and your application can face rejection. Thus, get help from business License consultants as you’re filing it.

5. Attach the documents required for getting payment gateway license India: Upload the scanned copies of the documents mentioned in the list given below:

a. PAN card of all the company’s directors

b. Certificate of Incorporation

c. DSC of the company’s directors

d. Details of the bank account of the company

e. Address proof of the registered office of the company

f. Business plan copy

g. GST registration certificate of the company

h. Software code of the payment gateway system

  1. Submit the application: After attaching the required documents and filling the application form, finalize the submission by paying the payment gateway license cost.
  2. Let the application go through proper processing: After your application is submitted, the RBI’s IT specialists take around assessing it and your software. If they don’t find any errors, they forward a report to the head office, stating that it’s OK to give you the license. Afterwards, you’ll be issued payment gateway license RBI.
Conclusion

Regardless of how easy the process seems, trust us that it’s not. Which is why, our business consultants are ready to give assistance, whenever you require.