This comes as the payments service provider launched its first international payment gateway (PG) service, earlier in July this year, with subsidiary Curlec in Malaysia to help local businesses in the geography accept digital payments.
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Razorpay had bought Malaysian fintech Curlec in February last year, marking its first international acquisition.
With the procurement of the licence, its international payment gateway, Curlec by Razorpay, will be regulated by Bank Negara Malaysia, the central bank of the country.
Additionally, Razorpay’s international gateway business will also now become a non-bank member of Payments Network Malaysia Sdn Bhd (PayNet), the national payments network and shared central infrastructure for Malaysia’s financial markets.
PayNet is the equivalent of National Payments Corporation of India (NPCI) in the local context, and operates DuitNow, similar to the unified payments interface (UPI) domestically.
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“Malaysia is an important strategic market for us as we see plenty of similarities with the Indian payments market. Our extensive experience in navigating the diverse and dynamic landscape of the Indian market empowers us to continually leverage that expertise, tackling various challenges and resolving payment issues on a global scale,” said Rahul Kothari, chief business officer, Razorpay, in a media statement. According to the company, to provide basic payment acceptance services to online businesses in Malaysia, payment service providers can either partner with a licensed PGs or apply for a licence.
During the launch of Curlec by Razorpay, the payments company had in parallel applied for a licence to onboard merchants directly, apart from forging third-party PG partnerships.
Working directly with merchants now will help it to simplify and streamline payment processes giving them a single view into all their money movement, the company added.
“Since launching our PG in July, we are now processing in excess of RM (Malaysian ringgit) 2 billion annually and serving over 1,000 merchants,” said Zac Liew, cofounder and chief executive of Curlec.
Curlec PG is looking to serve more than 5,000 businesses with RM10 billion in annualised gross transaction value (GTV) by 2025, Liew added.
Last December, the Reserve Bank of India (RBI) had asked Razorpay to stop onboarding newer merchants for its PG business in India. The firm is still awaiting the final nod for its payment aggregator licence.
ET had reported on October 12 that since the embargo, Razorpay is trying to generate more business from existing customers in India through new product lines, as it tweaks its go-to-market strategy.
In recent months, the company has doubled down on new offerings for businesses including value-added services across the direct-to-customer (D2C) segment, unified payments interface (UPI) and escrow, to continue revenue momentum and attract new customers to its ecosystem.