PayU receives RBI approval to handle online, offline and cross-border payments, marking a major step in India’s regulated fintech landscape.
India’s digital payments landscape just saw a major development. PayU, one of the country’s leading fintech platforms, has received integrated authorization from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA) across three major segments:
Online payments
Offline/physical merchant payments
Cross-border transactions — both inward and outward
This approval, granted under the Payment and Settlement Systems (PSS) Act, now positions PayU as a fully regulated, full-stack digital payments service provider. For Indian businesses—whether small shops or large enterprises—this is a move that could simplify payment operations across multiple touchpoints.
Why This Approval Is a Big Deal
Payment Aggregator licenses from the RBI are not easy to obtain. Over the last few years, the regulator has tightened norms to ensure payment intermediaries follow strict compliance, security, and operational standards.
PayU’s integrated authorization stands out for two reasons:
1. It covers all three major payment segments
Most payment companies receive approval for only online or offline aggregation.
PayU, however, now has authorization for:
Digital/web payments
Point-of-sale or in-store payments
Cross-border payments (inward remittances + outward settlements)
This means merchants can consolidate all payment channels under a single platform.
2. Cross-border PA approval is rare
RBI rarely grants permission for outward and inward cross-border aggregation due to high scrutiny around:
KYC norms
Foreign exchange rules
AML/CFT compliance
PayU managing to secure this approval signals strong regulatory confidence in its processes and governance.
How It Helps Businesses & Merchants
With the new approval, PayU can now offer an expanded suite of services across digital and physical commerce.
1. Unified payment acceptance
Merchants can use one provider for:
UPI
Cards
Netbanking
QR payments
Wallets
EMIs
Cardless EMI
Pay-later and BNPL options
This reduces operational friction and integration complexity.
2. Omni-channel experience
For businesses that operate both online and offline, PayU’s unified stack allows:
Centralized settlements
Consistent reconciliation
Single dashboard for both store and website purchases
This is useful for retail chains, D2C brands, and service providers.
3. Cross-border commerce becomes easier
Exporters, SaaS providers, freelancers, marketplaces, and import-focused businesses benefit from:
Faster settlements
Lower friction for receiving international payments
Secure outward remittances
Compliance-ready FX reporting
Essentially, PayU can now be a one-stop platform for global commerce needs.
PayU’s Statement on the Approval
A PayU spokesperson said the company is “honored to receive the Reserve Bank of India’s continued trust and authorization to operate as a Cross-Border (Both Inward & Outward) Payment Aggregator, in addition to online and offline PA.”
The company added that this milestone enables it to strengthen its mission of building secure, transparent, and customer-first payment solutions for businesses of all sizes.
Strengthening PayU’s Position in Indian Fintech
PayU already has a significant presence in India’s digital payment ecosystem:
4.5 lakh+ businesses use its payment gateway
It supports 100+ payment methods
It serves leading enterprise clients as well as SMBs
It has a strong footprint in the affordability ecosystem with EMIs, BNPL, and other financing options
With RBI’s integrated PA approval, PayU now strengthens its positioning in a fintech market where compliance and reliability have become critical differentiators.
This move also aligns with India’s push for more structured regulation in the payments sector—ensuring consumer protection while supporting innovation.
What This Means for the Payments Industry
This approval could set a precedent for more players to seek multi-channel payment aggregator licenses. It raises the competitive bar in:
Merchant experience
Cross-border payment efficiency
Regulatory compliance
End-to-end payments innovation
For merchants, it means more choice, security, and streamlined operations.
For PayU, it brings regulatory clarity and strengthens its long-term presence in India’s fintech economy.
Conclusion
RBI’s authorization marks a pivotal moment for PayU and the businesses it serves. With a unified license covering online, offline, and cross-border payments, PayU is now positioned to deliver a seamless, end-to-end payment ecosystem that supports India’s growing digital and global commerce aspirations.
Source & Disclaimer
Source: Press Release by NewsVoir
Disclaimer: This article is based on a syndicated press release from NewsVoir. TechMitra has edited and optimized the content for clarity, readability, and SEO. All facts, claims, and data are the responsibility of the source organization.
