PayU Secures Principle Approval From RBI To be Payment Aggregator By CIOTechOutlook Team

PayU Secures Principle Approval From RBI To be Payment Aggregator

CIOTechOutlook Team | Wednesday, 24 April 2024, 02:58 IST

PayU, a major player in digital payments, has received principle approval from the Reserve Bank of India to operate as a payment aggregator. With this approval, the firm can begin integrating new merchants onto its platform.

“This validation by RBI fills us with joy as it paves the way for us to welcome new businesses onto our platform. This is also a testament to our relentless focus on compliance and corporate governance,” Anirban Mukherjee, CEO, PayU said.

“This license is pivotal in our mission to establish a globally renowned digital payment infrastructure rooted in India,” he added.

The central bank had outlawed payment aggregators in 2022, including PayU, and restricted their ability to add new merchants to its platform. RBI instructed PayU India to reapply for its PA license in January 2023, citing the fintech company intricate corporate structure as one of the reasons for the decision.

As an early player offering web installments to internet organizations in 2011, it confronted considerable competition from rising new companies like Paytm and Razorpay, experienced misfortunes like the fruitless bid for Billdesk procurement, and wrestled with the shipper embargo imposed by the RBI.

On the business front, PayU's trajectory has shown significant growth despite these obstacles. In FY21, the company handled 800 million transactions, which increased to 1.4 billion in FY23, totaling $58 billion. Its revenue increased 145 percent to Rs. 1,591 crore in FY21 from Rs. 3,910 crore in FY23.