SUMMARY
PayU said that the nod will enable it to start the process of onboarding new merchants on the platform
The fintech platform added that the authorisation will bolster its digital payment infrastructure and accelerate its next phase of growth in India
The approval comes 15 months after the RBI returned PayU’s application for PA licence in January 2023 citing the company’s complex corporate structure
Prosus-backed digital payments giant PayU said that it has received in-principle authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA).
In a statement, PayU said the nod will enable it to start the process of onboarding new merchants on the platform.
The approval comes 15 months after the central bank reportedly returned the fintech platform’s application for the PA licence in January 2023 citing its complex corporate structure. While the RBI then directed the company to reapply for the licence, PayU had to pause onboarding new merchants for its online payment aggregation business.
The fintech platform added that the authorisation will bolster its digital payment infrastructure and accelerate its next phase of growth in India. It also claimed that it has received “tremendous interest from businesses across sectors and sizes” to avail PayU’s offerings.
“We would like to thank (the) Reserve Bank of India (RBI) for granting PayU the in-principle approval to operate as a payment aggregator. This validation by RBI fills us with joy as it paves the way for us to welcome new businesses onto our platform. This is also a testament to our relentless focus on compliance and corporate governance,” said PayU CEO Anirban Mukherjee.
A PA licence is mandatory for a platform to acquire merchants and deliver digital payment acceptance solutions.
Interestingly, PayU was among the fintech companies, including Razorpay, Cashfree and Paytm, that had to stop onboarding new merchants in the absence of the RBI’s approval.
However, the central bank has been actively dishing out PA licences lately after scrutinising these players for months. The likes of Razorpay and Cashfree also got the approvals in recent months.
Last week, fintech unicorn CRED also reportedly secured an in-principle approval from the RBI for its PA licence application. Prior to this, the RBI also awarded the PA licence to digital payments solutions company Innoviti last month and ecommerce giant Amazon’s fintech arm Amazon Pay in February.
