Ahead of IPO, PayU receives final Payment Aggregator license

PayU has received final authorization from the Reserve Bank of India (RBI) to operate as an online Payment Aggregator. The nod will also allow the fintech firm to onboard new merchants onto its platform.

In April 2024, PayU received in-principle approval from the RBI to operate as a payment aggregator.

“As we move forward, we remain dedicated to building a resilient, compliant, inclusive, and innovation-driven institution—one that serves merchants of all sizes and contributes meaningfully to the Digital India vision of the RBI and the Government,” said a PayU spokesperson.

The development comes at a time when PayU is planning for its IPO. It is eyeing a public listing during the second half of 2025. The company also appointed Pramod Rao as its Chief Risk Officer, who will be responsible for overseeing risk management, regulatory compliance, and strengthening the organization’s financial and operational risk framework.

PayU has also acquired a 43.5% stake in real-time payments technology firm Mindgate Solutions. This strategic partnership enhances PayU’s footprint in India’s real-time payments space and leverages Mindgate’s expertise to drive digital payment innovation on a global scale.

Several more startups have secured authorization from the RBI to operate as payment aggregators. Last month, MobiKwik’s subsidiary Zaakpay and PB Fintech’s subsidiary PB Pay received in-principle approval, while BharatPe’s Resilient Payments was granted final approval to operate as an online payment aggregator.

Earlier this year, cross-border payments company Skydo received in-principle authorization from the RBI to operate as a Payment Aggregator-Cross Border (PA-CB) entity. BRISKPE, a PayU-backed cross-border payments platform, also received RBI’s in-principle PA-CB authorisation for exports in March this year.