Ahead of its much-awaited initial public offering (IPO), fintech company PayU has received “integrated authorisation” from the Reserve Bank of India (RBI) to operate as a payment aggregator across online, offline, and cross-border transactions.
The approval will enable PayU to onboard merchants on its platform and process payment transactions on their behalf, from collecting funds from customers to routing transactions via cards, UPI, and net banking, and settling those payments with merchants.
It will also allow the digital payments firm to facilitate both inward and outward cross-border payments in compliance with the Payment and Settlement Systems Act.
PayU is the payments and fintech arm of Dutch technology investor Prosus, which also counts Meesho, OLX, Urban Company, Swiggy, Captain Fresh, and PharmEasy among its portfolio companies.
A PayU spokesperson said the company will continue to build “secure, transparent and customer-first” payment solutions for merchants of all sizes.
Intensifying Competition in the Payment Aggregator Space
The development comes more than six months after PayU received final authorisation from the central bank to operate as a domestic payment aggregator in May. The fresh regulatory nod will bolster its cross-border payments stack, allowing foreign merchants to collect payments from Indian customers.
PayU already has authorisation from the RBI to operate as a Bharat Bill Payment Operating Unit (BBPOU) and to issue, own, and operate prepaid payment instruments in India under the brand name “Citrus Wallet Powered by PayU.” It also offers buy-now-pay-later credit services via LazyPay.
Competition in the payment aggregator space has been heating up, with fintech companies such as Paytm, PayPal, and BharatPe receiving approval from the RBI to act as online payment aggregators in the last six months.
The development also comes close on the heels of the RBI’s final Master Direction on Regulation of Payment Aggregators (PAs) issued in September. The directions establish a robust regulatory framework aimed at increasing transparency, governance, and security of payment aggregators in India.
PayU IPO Plans Put on the Back Burner
The RBI approval comes at a time when PayU is planning to list on Indian stock exchanges. While reports first surfaced about the company launching its IPO in late 2023, those plans have now likely been delayed to 2026.
Last year, reports suggested that the company would go public in 2025. However, in June 2025, Prosus’s Chief Technology Officer Nico Marais told Reuters that it had deferred its IPO plans as it wants to focus on improving the business over the next 6–12 months.
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While Prosus hoped to list PayU by 2025, “that is not going to be our focus in the next year. Our focus is actually going to be to improve that business,” Marais reportedly said.
Notably, Indian fintech companies have been making a beeline for the…
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