ItzCash has got an in-principle approval to set up a Bharat Bill Payments Operating Unit (BBPOU) from the Reserve Bank of India (RBI). Other non-bank entities who have received a licence from the RBI include Spice Digital, Oxigen, PayU, TechProcess Payment Services, Euronet and Paytm.
The RBI is communicating the decision of who gets a licence directly to the applicants.
ItzCash has clocked volume transactions of over Rs 6,000 crore in the utility bill payments space for the year 2015-16. Cumulatively, ItzCash has processed bill payment transactions worth Rs 50,000 crore till date from when it started operations in 2006. Of the bills worth Rs 50,000 crore processed, ItzCash says that 45% of them were for utilities and 55% of them were DTH and telecom bills.
It has over 75000 ItzCash franchisees branded as “ItzCash World” in 3000+ Tier I and II cities and towns and over 35 million customers.
BBPOUs are units which can create an agent network and will be responsible for on-boarding billers and aggregators. In addition, they will be responsible for transaction handling, infrastructure development and application development, including APIs.
The BBPS intends to offer an interoperable and accessible bill payment service to customers through a network of agents, enabling multiple payment modes, and providing instant confirmation of payment.
ItzCash funding: In February, ItzCash secured an investment of Rs 100 crore from promoter Ashok Goel when it seeking a payments bank licence from the Reserve Bank of India. The company, in 2009, had raised Rs 50 crore from LightSpeed Venture Partners and prior to that it had raised Rs 10 million from Matrix Partners and Intel Capital.
Common Services Centres get a licence: Last month, the government’s Common Services Centres (CSC) got a licence to set up a Bharat Bill Payment Operating Unit (BBPOU). Through this, villagers will be able to pay their utility bills and get phone recharges and pay phone bills.