Fintech firm PayU receives RBI approval to operate as online payment aggregator in India

PayU, one of India's oldest digital payments companies and a subsidiary of Netherlands-listed Prosus, 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, the company has confirmed. 

This milestone comes more than a year after the fintech major received in-principle approval and follows a series of regulatory and operational challenges over the past two years.

The RBI's clearance enables PayU to formally resume onboarding new merchants at scale—a process that had been halted in 2022 when the central bank ordered the company to cease new sign-ups. The following year, its PA licence application was returned with a directive to reapply.

In response, PayU initiated a broad reorganisation, selling its global payments unit to Rapyd for $610 million, consolidating its India and Southeast Asia operations under PayU India, and appointing Anirban Mukherjee as CEO.

“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.

Founded as one of the first online payment players in India, PayU now joins a growing list of firms to receive the PA licence, including BillDesk, CCAvenue, Razorpay, and Cashfree. Zaakpay, operated by MobiKwik, was among the last to secure this approval in April 2025, as the RBI continues to tighten oversight of India's digital payments ecosystem.

IPO preparation

The approval also sets the stage for PayU's public listing, which is reportedly being planned for the second half of 2025. As part of its IPO preparedness and risk compliance enhancements, the company recently appointed Pramod Rao as Chief Risk Officer, tasked with overseeing regulatory adherence and risk governance frameworks.

"As we look ahead, our focus remains on building a resilient, compliant, inclusive, and innovation-led institution—one that empowers merchants of all sizes and plays a meaningful role in advancing the Digital India vision of the RBI and the Government of India. We sincerely thank our partners, merchants, employees, customers, and all stakeholders for their continued trust and support," the statement added.

PayU is also expanding its presence in India's fast-growing real-time payments space. Earlier this year, the company acquired a 43.5% stake in Mindgate Solutions, a real-time payments technology provider known for its UPI and digital transaction capabilities.