With integrated RBI authorisation, PayU strengthens its cross-border payment stack and gears up for a strategic IPO push.
RBI Authorises PayU as Integrated Payment Aggregator
PayU, the Prosus-owned fintech, has received integrated authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA) across online, offline, and cross-border segments.
This milestone enables PayU to:
- Onboard merchants across all payment channels
- Process digital payments via cards, UPI, net banking, and more
- Facilitate compliant inward and outward cross-border flows under the Payment and Settlement Systems Act, 2007
This move significantly enhances PayU’s merchant services, particularly for offshore sellers wishing to collect payments from Indian customers.
Strengthening Its Cross-Border Stack
PayU began rolling out cross-border payment and issuer authentication offerings last year. The RBI’s nod expands this line of business by allowing:
- Collection of domestic payments for foreign merchants
- Greater control over inward remittance flows
- Seamless support for global e-commerce and trade
With increasing competition from firms like Skydo (which received RBI approval in January) and PayPal (granted in-principle approval in May), PayU’s regulatory edge reinforces its leadership position in the segment.
Second Major Regulatory Win in Six Months
This marks PayU’s second major approval from RBI in 2025. In May, the company was granted final approval to act as a domestic payment aggregator, enabling it to offer robust online payment solutions to Indian merchants.
Together, these approvals position PayU as one of the few fintechs with comprehensive payment aggregator status—covering:
- Online & offline retail
- Cross-border commerce
- Digital-first financial infrastructure
IPO Preparations Underway
The RBI nod arrives at a critical juncture as PayU gears up for its much-anticipated public listing. Though originally expected to file its DRHP in 2023, the IPO timeline has been pushed to FY26, with the company currently focused on:
- Restoring profitability
- Improving corporate governance
- Expanding its board, with three new appointments made in May
Additionally, PayU is reportedly looking to raise $300 Mn to diversify its shareholder base and further strengthen market positioning ahead of the IPO.
Financial Performance: Signs of Recovery
Despite past losses, PayU India has shown notable financial improvement:
- Net Loss reduced by 42%, from INR 429.5 Cr in FY24 to INR 248.1 Cr in FY25
- Operating Revenue surged 23% to INR 5,563 Cr, up from INR 4,527.9 Cr
- Healthy growth recorded across:
- Core payment gateway business
- Credit services
This financial turnaround bolsters investor confidence and aligns with the company’s IPO goals.
