PhonePe secures RBI nod to operate as online payment aggregator

Walmart-owned fintech PhonePe has received final approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator.

This comes more than two years after it first got in-principle approval in August 2023.

With this approval, PhonePe can now expand its services to more online merchants, especially small and medium businesses (SMEs) across India.

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“PhonePe is well-positioned to accelerate financial inclusion by providing accessible payment solutions to businesses that were previously underserved, particularly in the SME segment. The company’s focus on serving both established enterprises and emerging businesses aligns with its goal of enabling broader digital financial inclusion,” said, Yuvraj Singh CBO of PhonePe.

A PA licence allows fintech platforms to bring merchants on board and offer digital payment solutions. It lets merchants accept different payment methods, collect customer payments, and get settlements without setting up a separate system.

PhonePe has led India’s UPI market for almost five years. In August 2025, it handled 915 crore UPI transactions worth nearly ₹12 lakh crore, holding a 46.5% market share. Today, it processes about 360 million transactions daily from 650 million registered users.

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PhonePe has over 650 million users and 45 million merchant outlets, handling more than 360 million transactions daily. Its services include digital payments, financial product distribution, the hyperlocal commerce app Pincode, and the Indus Appstore.

Since 2022, the RBI has been granting aggregator licenses to payment companies, requiring them to follow stricter compliance, capital, and operational rules.

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