PhonePe Gets RBI Approval to Act as Online Payment Aggregator

PhonePe has received final authorisation from the Reserve Bank of India (RBI) to function as an online payment aggregator. The approval gives the company permission to directly onboard and manage online merchants under the central bank’s regulatory framework for digital payment intermediaries.

Role of Aggregator License

The RBI introduced the payment aggregator framework to improve oversight of digital transactions and ensure stronger consumer protection. The license requires applicants to meet standards on compliance, capital, and operations before receiving approval.

Merchant Focus

With the license, PhonePe will now provide payment aggregation services to businesses across the country. The company has said that small and medium enterprises (SMEs) will be a part of its merchant onboarding.

Scale of Operations

PhonePe was launched in August 2016 and has grown into one of the largest digital payment platforms in India. As of August 2025, it reports more than 650 million registered users. Its merchant network spans over 45 million outlets, and it processes around 360 million transactions daily. 

The company’s annualized Total Payment Value (TPV) stands at over ₹150 lakh crore.

Business Lines

In addition to payments, PhonePe runs several other businesses. These include distribution of financial products, a hyperlocal commerce app called Pincode, and the Indus Appstore. The company’s aggregator operations will be part of this wider set of services.

The RBI has been issuing aggregator licenses to payment companies in phases since 2022. The phased process is intended to bring consistency in how digital intermediaries operate and to strengthen protections for merchants and customers.

Read more: PhonePe, Paytm, and Cred Halt Rent Payment Services After New RBI Rules!

Conclusion

PhonePe’s authorization to operate as a payment aggregator formalizes its position within India’s regulated digital payments sector. The approval helps expand its services to a broader base of merchants under the RBI framework.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.