PhonePe has received final authorization from the Reserve Bank of India (RBI) to operate as an online payment aggregator, enabling the fintech giant to onboard and service online merchants, particularly small and medium enterprises (SMEs).
The approval allows PhonePe to facilitate seamless digital payments for a wide range of merchants, including e-commerce platforms, retail businesses, and service providers, under the regulatory framework prescribed by the RBI. The move is expected to significantly boost digital payment adoption among SMEs, which often face challenges in accessing advanced payment infrastructure.
“The RBI’s authorization is a major milestone for PhonePe. It reinforces our commitment to empowering SMEs and expanding digital payment solutions across India,” a company spokesperson said.
India’s digital payments sector has witnessed rapid growth, with mobile wallets, UPI, and other online payment methods becoming integral to commerce. Analysts say that PhonePe’s new role as a payment aggregator will strengthen competition, enhance technological innovation, and improve transaction efficiency in the country.
With the RBI’s framework emphasizing security, transparency, and operational compliance, licensed payment aggregators like PhonePe are expected to play a pivotal role in shaping India’s digital economy in the coming years.
