PayU gets final RBI approval to operate as online payment aggregator

Prosus-backed PayU receives final RBI approval to act as an online payment aggregator over a year after in-principle clearance and corporate restructuring

Prosus-backed PayU has received final approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator, over a year after securing an in-principle nod from the banking regulator.

 

The fintech firm joins a list of over 50 online payment aggregators, which includes players such as Cashfree Payments, Razorpay, CCAvenue, BillDesk, among others.

 

In April last year, the RBI had issued in-principle approval to the Mumbai-based company, enabling it to begin onboarding new merchants onto its platform.

 

“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,” a PayU spokesperson said in a statement.

 

In January 2023, the RBI had asked the fintech company to reapply for a payment aggregator licence. One of the reasons cited was the company’s complex corporate structure.

 

In August of the same year, the company sold part of its financial technology business to Israel’s Rapyd for $610 million. The deal allowed Rapyd, a fintech-as-a-service provider, to acquire PayU’s Global Payments Organisation (GPO).

 

However, the deal excluded PayU’s operations in India, Turkey, and Southeast Asia.

 

So far in 2025, the RBI has issued final approval to nine companies to operate as online payment aggregators.