Groww Surrenders Payment Aggregator Licence

Groww has surrendered its payment aggregator licence, marking a subtle exit from the payments sector just months after obtaining approval from the Reserve Bank of India. As reported by The Head and Tale, this Bengaluru-based company withdrew its PA licence without any formal statement. This decision reflects a strategic move away from functioning as a payments intermediary.

Background on Groww’s Payments Initiative

In April 2024, Groww received RBI approval for its payments division, Groww Pay, enabling the firm to onboard merchants and process transactions directly. The company had ventured into the payments arena in 2023 with a UPI app, which facilitated bill payments, recharges, and credit card repayments. This latest development indicates a renewed emphasis on its primary broking and wealth management business, an area where Groww has experienced substantial growth.

Industry Trends and Other Exits

Groww is not the sole company making such a transition. Earlier in 2024, prominent food delivery service Zomato also surrendered its payment aggregator and wallet licence. Zomato had received RBI approval in 2022 but chose to exit the payments field without revealing specific motivations, as it concentrated on enhancing its food delivery and quick commerce services.

Changing Regulatory Landscape

These exits come amid evolving regulations for payment aggregators. Between 2021 and 2023, a rigorous period saw numerous applications face delays or withdrawal due to compliance issues. However, the RBI has exhibited increased flexibility in 2025, expediting approvals and granting licences across various categories—online, offline, and cross-border—to companies like Paytm, Razorpay, PayU, Pine Labs, Easebuzz, and Airpay, according to a report by Startup Superb.