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PayU Secures RBI Nod for Payment Aggregation: A Boost for India's Fintech Landscape

PayU has received provisional approval from the Reserve Bank of India (RBI) to function as a payment aggregator. This authorization will enable the fintech company to onboard new merchants onto its platform.

In January 2023, the RBI instructed PayU to reapply for its license, resulting in the Prosus-controlled company ceasing to onboard new customers. The rejection was reportedly due to PayU's intricate corporate structure.

In recent years, the RBI has been actively regulating various sectors, including PA-PG, peer-to-peer lending, buy now pay later (BNPL), credit card abuse, and the structure of non-banking financial corporations (NBFCs).

PayU joins a list of fintech companies, including Razorpay, Cashfree, Open, EnKash, Juspay, and Infibeam, that have received approval from the RBI.While Cred is reported to have also obtained a payment aggregator license, official confirmation from both RBI and Cred is pending.

PayU, along with MobiKwik, Pine Labs, Navi, and others, is considering an initial public offering. In India, PayU serves over 500,000 merchants across payments, credit, and PayTech sectors, claiming an annualized volume of over $60 billion.

For the financial year ending in March 2023, PayU's Indian entity recorded revenue growth of over 30% to $400 million (Rs 3,300 crore). In the current fiscal year, the company has maintained this momentum, reporting revenue of $211 million (Rs 1,700 crore) from its Indian operations.


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