Groww Exits Payments Space: Surrenders Licence with RBI

Groww has surrendered its payment aggregator (PA) licence, marking a quiet exit from the payments business just months after receiving approval from the Reserve Bank of India (RBI).

Groww is not alone in stepping back from the payments space. Earlier in 2024, Zomato also surrendered its payment aggregator and wallet licence. Despite receiving RBI approval in 2022, the company exited the segment as it sharpened its focus on food delivery and quick commerce.

Licence Withdrawal Signals Strategic Shift

According to the news report, Groww withdrew its PA licence without a formal announcement. The move suggests a strategic pivot away from operating as a payment intermediary. Groww had secured RBI approval in April 2024 for its payments arm, Groww Pay, which enabled it to onboard merchants and process transactions directly.

The company had entered the payments segment in 2023 with a UPI-based app offering services such as bill payments, mobile recharges, and credit card repayments.

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Evolving Regulatory Landscape

These exits come amid changes in the regulatory environment for payment aggregators. Between 2021 and 2023, the sector saw stringent scrutiny, with many applications delayed or returned due to compliance issues.

However, in 2025, the RBI adopted a more flexible stance, accelerating approvals and granting licences across online, offline, and cross-border categories to players such as Paytm, Razorpay, PayU, Pine Labs, Easebuzz, and Airpay, according to an Entrackr report.

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