PayU Receives Final Authorisation as Payment Aggregator

PayU has successfully obtained final authorisation from the Reserve Bank of India (RBI) to function as an online Payment Aggregator. This approval enables the fintech company to onboard new merchants onto its platform.

Timeline of Authorisation

In April 2024, PayU was granted in-principle approval by the RBI to serve as a payment aggregator.

Commitment to Innovation

According to a PayU spokesperson, the firm is focused on fostering a robust, compliant, inclusive, and innovation-led institution that caters to merchants of all sizes. This commitment aligns with the Digital India vision endorsed by the RBI and the Government.

Plans for Public Listing

This development arrives as PayU is gearing up for its Initial Public Offering (IPO), aiming for a public listing in the latter half of 2025. Additionally, the company appointed Pramod Rao as its Chief Risk Officer, responsible for managing risk, ensuring regulatory compliance, and reinforcing the organisation’s financial and operational risk frameworks.

Strategic Acquisitions

In a further step to strengthen its market presence, PayU has acquired a 43.5% stake in Mindgate Solutions, a firm specialising in real-time payments technology. This partnership enhances PayU’s position in India’s real-time payments arena and utilises Mindgate’s expertise to promote digital payment innovation globally.

Recent Authorisations in the Industry

Other startups have also received the green light from the RBI to operate as payment aggregators. Recently, MobiKwik’s subsidiary, Zaakpay, and PB Fintech’s subsidiary, PB Pay, were granted in-principle approval. Meanwhile, BharatPe’s Resilient Payments achieved final approval to function as an online payment aggregator.

Cross-Border Payment Authorisation

Earlier this year, Skydo, a cross-border payments company, also secured in-principle authorisation from the RBI to operate as a Payment Aggregator-Cross Border (PA-CB) entity.