‘PayU’ will now be able to work as a payment aggregator: RBI approval received; Will be able to make payment like PhonePe, GooglePay and Paytm
The Reserve Bank of India (RBI) has given in-principle approval to fintech firm PayU to act as a payment aggregator. The company will now be able to add new merchants to its platform. This means that now it will be able to receive payments through QR code like other UPI apps like PhonePe, Google Pay and Paytm.
In-principal approval is not a final license. Only these companies get approval to operate for 6 to 12 months. Now the company will be able to move its business forward. In January 2023, RBI had refused to give permission to the company to work as a payment aggregator.
What is a payment aggregator?
Payment aggregator is a third party service provider that enables customers to make online payments and merchants to accept payments. The payment aggregator allows its customers to make payments through payment modes like debit card, credit card, cardless EMI, UPI, bank transfer and e-wallet.
Global Investment Group Porus is the investor
Last year, RBI had said that the corporate structure of the company (PayU) is quite complex, simplify it and apply again. The Central Bank had also banned the company from adding new customers. Global Investment Group Porus is a major investor in the company.
Fintech company Cred also got RBI approval
Earlier, RBI had also refused to give approval to Paytm, Razorpay and Cashfree. But later Razorpay and Cashfree were approved for this. Money Control has quoted sources as saying that another fin tech company CRED has also received RBI approval for this.
Earnings of ₹1,757 crore in first half of FY24
PayU India had earned $ 399 million (about ₹ 3,323 crore) in the financial year 2022-23. This was 31% more than in the financial year 2021-22. At the same time, in the first half of the financial year 2023-24 (April 23-September 23), the company’s income from core payment business increased by 15% to $ 211 million (about ₹ 1,757 crore).
