PayU Receives RBI Approval as Payment Aggregator

PayU Payments has achieved a significant milestone. The Reserve Bank of India (RBI) has granted it in-principle approval to serve as a payment aggregator. 

This pivotal development paves the way for PayU to expand its merchant base and enhance its offerings in the digital payments ecosystem. 

The approval follows approximately 15 months of deliberations with the RBI, overcoming initial hurdles and rejections.

PayU Facilitating Online Transactions:

PayU, a prominent fintech company, serves as a conduit for online transactions, enabling individuals and merchants to engage seamlessly in buying and selling activities. 

Beyond facilitating transactions, PayU plays a crucial role in extending the accessibility of financial services. The platform encompasses diverse services, including a payment gateway and buy-now-pay-later options. 

Supported by Prosus, PayU operates in a competitive landscape, contending with established players such as Razorpay, backed by Tiger Global, and PhonePe, owned by Walmart.

Emphasis on Compliance and Governance:

Anirban Mukherjee, CEO of PayU, underscores the significance of the RBI’s approval, hailing it to validate its unwavering commitment to compliance and corporate governance standards. 

This endorsement reflects PayU’s steadfast dedication to regulatory adherence, a cornerstone of its operational ethos.

Strengthening Oversight in the Payments Sector:

The RBI’s decision to approve PayU coincides with its broader directive to bolster oversight within the payments sector. 

Recent notifications issued by the central bank underscore the imperative for stringent scrutiny of transaction-related activities conducted by merchants. 

The regulatory mandate also emphasizes the adherence to prescribed guidelines, signaling a proactive stance towards safeguarding the integrity of digital payments infrastructure.

Growth Trajectory of PayU India:

PayU India has demonstrated robust financial performance despite regulatory challenges, underscoring its resilience and market traction. 

In fiscal year 2023, PayU India reported revenue of $400 million. While fiscal year 2024 results are awaited, preliminary reports indicate a promising trajectory, with core payments business revenue witnessing a notable 15 percent increase to $211 million during the first half of fiscal year 2024, as per a report by MoneyControl.

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