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Prosus-owned fintech major PayU has secured ‘integrated authorisation’ from the Reserve Bank of India (RBI) to operate as a payment aggregator across online, offline, and cross-border transactions.

The approval allows PayU to onboard merchants and process digital payments on their behalf — from collecting customer funds to routing transactions via cards, UPI and net banking, and settling them with merchants. It also enables the company to facilitate compliant inward and outward cross-border payment flows under the Payment and Settlement Systems Act, 2007.

This marks PayU’s second major regulatory milestone in six months, following its final authorisation from RBI to operate as a domestic payment aggregator earlier this year. The new approval now strengthens its cross-border stack, allowing offshore merchants to collect payments from customers in India.

PayU began offering cross-border support and issuer authentication solutions last year, and the fresh licence significantly expands the scope of that business. The competition in the cross-border payment aggregation space has been heating up. In January, Skydo received a final RBI authorisation to operate as a cross-border payment aggregator, while PayPal secured an in-principle approval from the central bank in May.

The regulatory nod comes as PayU prepares for its planned public listing. Prosus had earlier indicated a target to list the fintech giant on Indian exchanges in 2025, although the company has yet to file its draft papers with SEBI. In the run-up to its IPO, PayU expanded its board with three new appointments in May.

In 2023, PayU was planning to file its DRHP but postponed it to 2025. Later, the company was said to be eyeing a public listing in FY26 but it has been deferred again. The company is deferring its public listing attempt to double down on restoring profitability in its Indian business and to improve its corporate governance and operations.

On the financial front, PayU India narrowed its net loss by 42% to INR 248.1 Cr in FY25 from INR 429.5 Cr in FY24. Operating revenue rose 23% to INR 5,563 Cr during the fiscal, up from INR 4,527.9 Cr a year earlier. In the fiscal under review, PayU also reported healthy growth across its core payment gateway as well as its credit business.

Besides, the company is also reported to be in process to raise an additional $300 Mn to diversify its shareholder base and strengthen its market position as it gears up for its IPO.

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