PayU receives RBI approval to operate as an online, offline and cross-border payment aggregator

PayU has secured integrated authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator across online, offline and cross-border transactions.

The approval allows the Prosus-owned fintech company to onboard merchants, collect customer payments through cards, UPI and net banking, route these transactions securely, and settle funds with merchants. It also permits PayU to handle compliant inward and outward cross-border payment flows under the Payment and Settlement Systems Act, 2007.

The authorisation comes just months after PayU received its final licence to operate as a domestic payment aggregator. With this new approval, the company’s cross-border stack gains a stronger foundation, allowing offshore merchants to accept payments from customers in India.

“We are honoured to receive the Reserve Bank of India’s continued trust and authorisation to operate as a Cross-Border (Both Inward & Outward) Payment Aggregator, in addition to online and offline PA. This milestone reinforces our commitment to building a resilient and innovation-driven payments ecosystem, enabling us to offer secure, transparent, and customer-first payment solutions, including seamless omni-channel experiences for merchants of all sizes,” said a PayU spokesperson.

The approval places PayU among the select regulated entities allowed to run an integrated payment aggregation suite across digital and physical channels.

The Reserve Bank of India requires payment aggregators to meet strict capital, governance and security standards to operate across online, offline or cross-border categories. With the new licence, PayU can continue expanding services and onboarding merchants under this regulatory framework.

The regulatory momentum comes as PayU prepares for a public listing. Prosus had earlier indicated a target to list the company on Indian exchanges in 2025. PayU had originally planned to file its draft papers in 2023 but postponed the process to 2025. The listing was later expected in FY26 but has been deferred again as the company focuses on restoring profitability in its India business and improving corporate governance.

In May, PayU expanded its board with three new appointments as part of its pre-IPO readiness. The company is also reported to be exploring an additional fundraise of $300 million to diversify its shareholder base and strengthen its position in the market.

On the financial front, PayU India narrowed its net loss by 42% to Rs 248.1 crore in FY25 from Rs 429.5 crore in FY24. Operating revenue rose 23% to Rs 5,563 crore from Rs 4,527.9 crore a year earlier.