In a significant move for India’s thriving fintech space, PayU, backed by global investment giant Prosus, has been granted the final nod from the Reserve Bank of India to function as an official online payment aggregator. This milestone comes more than a year after the company received initial approval and undertook internal corporate changes to align with regulatory expectations.
The Mumbai-based digital payments firm now stands among over fifty authorised payment aggregators in the country, sharing the space with names like Razorpay, Cashfree Payments, CCAvenue, and BillDesk. With this authorisation, PayU can now begin onboarding new merchants and expand its digital transaction services across the nation.
In a statement filled with gratitude and ambition, a PayU spokesperson shared, “We are pleased to share that PayU Payments Pvt. Ltd. has received final authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007. We are deeply grateful to the RBI for the trust placed in us and for the opportunity to contribute responsibly to India’s dynamic payments ecosystem.”
The road to approval, however, was not without its twists. Back in January 2023, the RBI requested PayU to submit a fresh application, citing concerns related to the firm’s intricate corporate structure. This led to strategic shifts within the organisation. In August of that year, PayU sold a major part of its Global Payments Organisation to Israel’s Rapyd in a $610 million deal, though this transaction did not include its operations in India, Turkey, or Southeast Asia.
The RBI has already granted final approval to nine companies in 2025 alone to operate as online payment aggregators, signalling a growing push toward regulated and streamlined digital payments in the country.
PayU’s clearance marks not just the end of a long wait but the beginning of a stronger presence in India’s ever-evolving financial ecosystem. With trust from the regulator and fresh ambition, the company is ready to shape the next chapter of cashless commerce.
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