What is the cost of starting a payment gateway license in India?

Posted by Jatin on June 24th, 2021

To start India’s most complicated business – electronic transaction platform – you need to acquire the payment gateway license. The responsibility of issuing this license and maintaining its rules and regulations is given to the Reserve Bank of India. Thus, in order to obtain the authorization to start an electronic transaction portal, you have to make the APEX bank in India happy.

In this article, we are going to divulge to you the not-so-secret information about what is the cost of starting a payment gateway license in India.

Let’s begin.

Cost of setting up the infrastructure

As we have already said, starting an electronic transaction platform is complicated. You have to make sure that the following three steps happen flawlessly in that platform:

•          Authentication: When the customer enters his details, the platform has to formulate a strategy to verify the identity of the customer. It does so using password, pin or an OTP.
•          Encryption:  After the platform confirms the customers details, it encrypts them. It’s done to ensure that the customer data isn’t vulnerable to any exploitation.
•          Finalization: The encrypted data reaches the bank, who decrypts the data to re-assess customer details before finalizing the transactions and transferring the money into the payee’s account.

The payment gateway license cost of setting up the payment gateway platform can vary depending upon your skill-level, the encryption you’re using, and the type of data security measures you’ve implemented in the platform.

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Cost of getting PCI DSS certification

You can’t just create a platform and start filing the application for payment gateway license in India. The Reserve Bank of India is a busy body. Thus, you’re going to have to make yourself eligible for the license first. To do that, you need the approval of Payment Card Industry Data Security Standard. The process of which is as follows:

•          File the online application form for PCI DSS certification
•          Let an independent body assess your application and your code.
•          Get certified.

The cost or the payment gateway license fees that you need to pay will be minuscule –if you find the right experts to aid you that is.

Cost of setting up the company

If you want to file the application for payment gateway license, India can only help if you’re a business entity. What do I mean? it means that prior to filing the application, you need to incorporate your business as a company. It should be either a private limited or a public limited company. My suggestion is, if you’re just starting out and bootstrapping yourself, go for a private limited company.

The government fee is NIL when it comes to company incorporation. However, the stamp duty will cost you and the cost will depend upon your CAPEX.

Additionally, your net worth should be at least INR 10 lakh to file the application. You can count it as the payment gateway license cost for now.

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Cost of filing the application and doing the rest

Finally, the cost that you’re required to pay is the one to file the online application. It won’t very much. The application processing fee depends upon your CAPEX and the professionals who are helping you file the application.

To start India’s most complicated business – electronic transaction platform – you need to acquire the payment gateway license. The responsibility of issuing this license and maintaining its rules and regulations is given to the Reserve Bank of India. Thus, in order to obtain the authorization to start an electronic transaction portal, you have to make the APEX bank in India happy.

In this article, we are going to divulge to you the not-so-secret information about what is the cost of starting a payment gateway license in India.

Let’s begin.

Cost of setting up the infrastructure

As we have already said, starting an electronic transaction platform is complicated. You have to make sure that the following three steps happen flawlessly in that platform:

•          Authentication: When the customer enters his details, the platform has to formulate a strategy to verify the identity of the customer. It does so using password, pin or an OTP.
•          Encryption:  After the platform confirms the customers details, it encrypts them. It’s done to ensure that the customer data isn’t vulnerable to any exploitation.
•          Finalization: The encrypted data reaches the bank, who decrypts the data to re-assess customer details before finalizing the transactions and transferring the money into the payee’s account.

The payment gateway license cost of setting up the payment gateway platform can vary depending upon your skill-level, the encryption you’re using, and the type of data security measures you’ve implemented in the platform.

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Cost of getting PCI DSS certification

You can’t just create a platform and start filing the application for payment gateway license in India. The Reserve Bank of India is a busy body. Thus, you’re going to have to make yourself eligible for the license first. To do that, you need the approval of Payment Card Industry Data Security Standard. The process of which is as follows:

•          File the online application form for PCI DSS certification
•          Let an independent body assess your application and your code.
•          Get certified.

The cost or the payment gateway license fees that you need to pay will be minuscule –if you find the right experts to aid you that is.

Cost of setting up the company

If you want to file the application for payment gateway license, India can only help if you’re a business entity. What do I mean? it means that prior to filing the application, you need to incorporate your business as a company. It should be either a private limited or a public limited company. My suggestion is, if you’re just starting out and bootstrapping yourself, go for a private limited company.

The government fee is NIL when it comes to company incorporation. However, the stamp duty will cost you and the cost will depend upon your CAPEX.

Additionally, your net worth should be at least INR 10 lakh to file the application. You can count it as the payment gateway license cost for now.

Cost of filing the application and doing the rest

Finally, the cost that you’re required to pay is the one to file the online application. It won’t very much. The application processing fee depends upon your CAPEX and the professionals who are helping you file the application.

Conclusion

The cost of starting a payment gateway license is the cost you need to pay the setup the infrastructure, the business entity, the certification and in the end, filing the application. If you want that cost to be reduced and want to get the payment gateway license as soon as possible, you reach call Registrationwala.

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SD:

What is the cost of starting  payment gateway license in India? It’s a cost that consists of multiple parts that you pay at multiple stages from setting up your platform to filing the application.

Conclusion

The cost of starting a payment gateway license is the cost you need to pay the setup the infrastructure, the business entity, the certification and in the end, filing the application. If you want that cost to be reduced and want to get the payment gateway license as soon as possible, you reach call Registrationwala.

SD:

What is the cost of starting  payment gateway license in India? It’s a cost that consists of multiple parts that you pay at multiple stages from setting up your platform to filing the application.