PhonePe Secures RBI Approval to Operate as Online Payment Aggregator

PhonePe has also been granted the Reserve Bank of India (RBI) permission to operate as an online payment aggregator. This licence will allow the Walmart-owned digital payments platform to increase its services to small and medium-sized businesses (SMEs) and increase its reach among online merchants. 

Increasing Financial Inclusion of SMEs

 According to Yuvraj Singh Shekhawat, the Chief Business Officer of PhonePe's Merchant Business, “With this authorisation, PhonePe is well-positioned to accelerate financial inclusion by providing accessible payment solutions to businesses that were previously underserved, particularly in the SME segment.”

PhonePe, which currently boasts over 650 million registered users, is also equipped with a merchant network of 45 million outlets. The platform processes more than 360 million transactions daily, with an annualised total payment value exceeding Rs 150 lakh crore.

The importance of RBI Permission to PhonePe

In 2023, the RBI had given in-principle approval of a payment aggregator licence to PhonePe. The diversification of the company into additional financial services, including insurance, lending, and wealth management, as well as its e-commerce application Pincode, also contributes to its presence in the Indian digital environment.

This action is in line with the trend of increased popularity of fintech companies in India obtaining payment aggregator licences, with other companies such as Easebuzz, PayU, BharatPe, and Pine Labs acquiring the same approvals.