Digital Scoop India Official Platform of Digital Scoop India Featuring Latest & Best News #Articles #Bytes #Entertainment #DigitalScoopMagazine
Related Articles
PayU Payments, a prominent player in the fintech sector, has achieved a significant milestone with the Reserve Bank of India (RBI) granting it approval to operate as a payment aggregator. This development marks a pivotal moment for PayU, coming after 15 months of discussions and initial challenges.
As a payment aggregator, PayU will now have the authorization to onboard new merchants onto its platform, expanding its reach and services in the digital payments landscape. The approval reflects the company’s commitment to compliance and corporate governance, as stated by PayU CEO Anirban Mukherjee.
PayU, a fintech powerhouse backed by Prosus, facilitates online transactions for individuals and merchants, enabling the seamless buying and selling of goods and services. The company’s offerings also include buy-now-pay-later services, enhancing convenience for users. In the competitive landscape, PayU competes with industry giants like Razorpay, backed by Tiger Global, and PhonePe, owned by Walmart.
The RBI’s decision to grant PayU the status of a payment aggregator underscores the central bank’s emphasis on regulatory scrutiny and adherence within the payments sector. This approval comes amid a broader directive from RBI to online payment firms, urging them to enhance monitoring of transactions and ensure strict adherence to guidelines.
Previously, PayU faced challenges with its application due to a complex corporate structure, leading to initial rejection and restrictions on onboarding new merchants. However, the company’s perseverance and focus on compliance have ultimately resulted in this significant achievement.
Financially, PayU India reported robust revenue of $400 million in FY23, with continued growth anticipated in FY24. Its core payments business revenue witnessed a 15 percent increase to $211 million in the first half of FY24, indicating a positive trajectory for the company in the digital payments ecosystem.
Sources By Agencies
