Cashfree Payments which provide payment gateway services on Thursday got an approval from the Reserve Bank of India for payment aggregator and prepaid payment instrument licenses, Moneycontrol reported citing sources.

Cashfree Payments has more than 1 lakh merchants on its gateway and offers payment gateway services, application programming interface (API) for banking and auto collect service which enables merchants to collect payments from customers via various payment modes.

Cashfree Payments was founded in 2015 by IIT Hyderabad aulmni Akash Sinha and IIT Kharagpur graduate Reeju Datta and it processes transactions worth $20 billion annually in the country.

Other players who have received RBI's in-principal approval for the license include Razorpay, Pine Labs, Innoviti, Easebuzz, Stripe, MSwipe, NTT Data Payment Services and 1Pay Mobileware.

The PPI license will allow Cashfree to provide wallet services, but the company has not disclosed its plans on that front, Moneycontrol report said.