In a significant milestone for India’s fintech landscape, PayU has received the final authorization from the Reserve Bank of India (RBI) to operate as an online Payment Aggregator. This green light allows the company to officially onboard new merchants, expanding its reach in the booming digital payments sector.
The approval marks a crucial step forward from the in-principle nod PayU received in April 2024. With this regulatory clearance, the company is now fully empowered to offer its payment services to a broader range of businesses across the country.
“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.
This development comes at a pivotal time for PayU, as the company prepares for its much-anticipated IPO scheduled for the latter half of 2025. In preparation, PayU has been reinforcing its leadership team and risk framework. The appointment of Pramod Rao as Chief Risk Officer underscores this intent—he will be leading risk management and compliance efforts to ensure robust operational resilience as the company scales.
PayU is also deepening its capabilities in real-time payments. The company recently acquired a 43.5% stake in Mindgate Solutions, a leader in real-time payments technology. The partnership not only strengthens PayU’s position in India’s digital payments ecosystem but also opens doors to global innovation in real-time transaction processing.
The RBI’s approval of PayU comes amid a broader wave of regulatory clearances for players in the payments space. Startups like MobiKwik’s Zaakpay, PB Fintech’s PB Pay, and BharatPe’s Resilient Payments have also made strides with either in-principle or final approvals. Meanwhile, Skydo received the RBI’s go-ahead to operate as a cross-border payment aggregator earlier this year.
With this final approval in hand, PayU is now poised to play a larger role in shaping India’s digital commerce journey—serving everyone from small merchants to large enterprises, while aligning with the government’s broader push for financial inclusion and innovation.
