PhonePe Gets RBI Approval to Operate as Online Payment Aggregator

In a major regulatory milestone, PhonePe has received the final approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator. Announced on September 19, 2025, this authorization empowers the fintech giant to offer secure and scalable digital payment solutions, especially tailored for small and medium enterprises (SMEs) across India. This development strengthens PhonePe’s role in the growing digital financial inclusion landscape, particularly for underserved businesses that have historically lacked access to seamless online payment infrastructure.

What Is a Payment Aggregator?

A payment aggregator is a service provider that enables merchants to accept digital payments without having to set up their own separate payment gateways or merchant accounts. These aggregators act as intermediaries between the customer, merchant, and banks.

The RBI’s regulatory framework for payment aggregators ensures,

• Secure payment processing
• Consumer protection
• Operational transparency
• Merchant onboarding standards

With this approval, PhonePe is now authorized to facilitate merchant payments independently, opening the door for expanded services and deeper integration with businesses across sectors.

What the Approval Means for PhonePe

Commenting on the RBI nod, Yuvraj Singh Shekhawat, Chief Business Officer – Merchant Business at PhonePe, said the authorization will allow the platform to scale up its services to a broader spectrum of businesses, especially those in the SME segment, which are often underserved in the digital payments space.

Key opportunities for PhonePe include,

• Expanding its merchant network beyond large enterprises to small and mid-sized businesses.
• Offering customized payment solutions with robust security features.
• Accelerating digitization of rural and semi-urban business ecosystems.

The company’s stated goal is to support India’s broader digital financial inclusion mission by making online payments accessible, affordable, and secure for every Indian business.

Static Facts

• Company: PhonePe
• Founded: August 2016
• Approval Received: September 19, 2025
• Approved By: Reserve Bank of India (RBI)
• Role: Online Payment Aggregator