finpeel Answers · India · updated 2026-08-14

What is the difference between a Payment Aggregator and Payment Gateway in India?

Under RBI’s framework, a Payment Aggregator facilitates merchants’ receipt of customer payments and handles the aggregation/settlement flow, while a Payment Gateway is primarily a technology infrastructure provider that routes or facilitates payment messages without handling funds as the aggregator.

The distinction is functional, not branding. If the “gateway” actually pools or controls merchant settlement funds, it can move into Payment Aggregator territory.

Map custody of funds, merchant contracts and settlement responsibility before choosing the regulatory label.

Regulator: Reserve Bank of India (RBI)

Primary sources: RBI — Guidelines on Regulation of Payment Aggregators and Payment Gateways

Directional — not legal advice. Verify with the regulator before committing.

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