PayU has achieved a significant milestone by securing the final authorization from the Reserve Bank of India (RBI) to operate as an online Payment Aggregator. This approval enables the fintech giant to onboard new merchants onto its platform, further solidifying its position in the competitive digital payment landscape.
In April 2024, PayU received in-principle approval from the RBI, marking the first step towards this final authorization. A spokesperson from PayU emphasized the company’s commitment to building a compliant and innovative institution that serves merchants of all sizes, aligning with the Digital India vision set forth by the RBI and the government.
Strategic Moves Ahead of IPO
As PayU prepares for its Initial Public Offering (IPO), targeted for the second half of 2025, the recent developments are timely. The company has also strengthened its leadership by appointing Pramod Rao as the Chief Risk Officer. Rao’s role will focus on overseeing risk management and regulatory compliance, critical components for a company anticipating a public listing.
In addition to the new license and leadership appointment, PayU has made a strategic investment by acquiring a 43.5% stake in Mindgate Solutions, a Mumbai-based real-time payments technology firm. This partnership aims to enhance PayU’s capabilities in India’s burgeoning real-time payments sector and leverage Mindgate’s expertise for global digital payment innovations.
Growth of the Payment Aggregator Sector
PayU’s achievement comes amid a trend where several startups are also receiving RBI approvals to operate as payment aggregators. Recently, subsidiaries of MobiKwik and PB Fintech, along with BharatPe’s Resilient Payments, have been granted the necessary licenses.
Additionally, this year has seen cross-border payments company Skydo receive in-principle authorization to function as a Payment Aggregator-Cross Border (PA-CB) entity. The growing number of licenses being issued underscores the dynamic evolution of the payment aggregator sector in India, paving the way for more innovation and competition in digital transactions.
