Overview
- Under the licence, PayU can collect funds, route transactions via cards, UPI and net banking, settle with merchants, and handle inward and outward cross-border payments in compliance with the PSS Act, 2007.
- The approval builds on PayU’s final domestic payment-aggregator authorisation obtained earlier this year, marking a second major regulatory step within roughly six months.
- The broadened scope strengthens PayU’s cross-border stack by enabling offshore merchants to accept payments from customers in India.
- Competition in payment aggregation is intensifying as Paytm, PayPal and BharatPe secure RBI approvals, alongside new RBI Master Directions issued in September that tighten governance and security standards.
- PayU India reported FY25 operating revenue up about 23% to INR 5,563 crore with a 42% narrower net loss of INR 248 crore, while IPO plans have been deferred toward 2026 and an additional $300 million fundraising is reported.