PayU, one of India’s oldest and most trusted digital payments companies, has received final authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator (PA) under the Payment and Settlement Systems Act, 2007. This approval is a significant boost for the fintech giant, coming after more than a year of regulatory hurdles and operational changes.
Why Is This Approval Important?
With this final RBI clearance, PayU can now legally onboard new merchants at scale. This is a big win, especially since the company was ordered to halt new merchant sign-ups in 2022 due to regulatory concerns. In 2023, PayU’s application for a PA licence was returned with a directive to reapply, mainly because of its complex corporate structure.
To address this, PayU reorganised its business, selling its global payments unit to Rapyd for $610 million and consolidating its India and Southeast Asia operations under PayU India. Anirban Mukherjee was appointed as CEO to lead the next phase of growth.
PayU Joins Elite List of RBI-Approved Payment Aggregators
PayU now joins a select group of over 50 RBI-approved payment aggregators, including BillDesk, CCAvenue, Razorpay, and Cashfree. Zaakpay (MobiKwik) was among the latest to get this license in April 2025, as the RBI continues to tighten oversight of India’s booming digital payments sector.
“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,” said a PayU spokesperson.
What Does This Mean for Merchants and Businesses?
- Faster Onboarding: Merchants can now join PayU’s platform quickly and securely.
- Wide Payment Options: PayU supports 150+ payment methods, including UPI, cards, net banking, wallets, and EMIs.
- Enhanced Security: RBI’s strict governance ensures safer transactions for both merchants and customers.
- Support for Digital India: PayU is committed to helping businesses of all sizes and advancing the government’s Digital India mission.
IPO on the Horizon
With the RBI licence secured, PayU is gearing up for its initial public offering (IPO), expected in the second half of 2025. The company has strengthened its leadership, appointing Pramod Rao as Chief Risk Officer to ensure robust compliance and risk management.
Expanding in Real-Time Payments
PayU is also making strategic moves in India’s fast-growing real-time payments market. Earlier this year, it acquired a 43.5% stake in Mindgate Solutions, a leading UPI and digital payments technology provider. This partnership will help PayU offer even more innovative payment solutions to Indian businesses.
RBI’s Push for a Safer, Stronger Payments Ecosystem
The RBI’s licensing process is designed to ensure only serious and compliant players operate in India’s digital payments space. Over 180 companies applied for aggregator licences, but only a select few, including PayU, have received final approval as of early 2025.