PayU has received a green light by the central bank to operate as a payment aggregator and onboard new merchants
PayU, a fintech company backed by Prosus, received RBI's green light on Tuesday to function as a payment aggregator. This allows the digital financial services provider to start bringing new merchants onto its platform following the in-principle approval.
This decision comes after the Reserve Bank of India increased its focus on the payments sector, which involves directing online payment companies to oversee merchants' transaction-related activities and ensure compliance with revised guidelines.
Anirban Mukherjee, CEO, PayU stated in a social media post, "We would like to thank Reserve Bank of India (RBI) for granting PayU the in-principle approval. We value the trust that RBI has placed in us, and we are ready to welcome new businesses onto our platform."
The company will join other firms like Razorpay and Cashfree Payments, once it receives the final approval from the Reserve Bank of India.
"This is a testament to our relentless focus on compliance and corporate governance. This license is pivotal in our mission to establish a globally renowned digital payment infrastructure rooted in India," Mukherjee said.
"In alignment with the government's Digital India initiative and the RBI's progressive regulations, we are dedicated to driving digitization and financial inclusion, particularly for small merchants," he further added.
PayU offers payment gateway solutions to online businesses, catering to a vast network of over 450,000 merchants and providing access to a diverse range of payment methods, totaling over 100 options.