PhonePe Secures RBI Approval to Operate as Online Payment Aggregator.

In September 2025, Walmart-backed PhonePe Limited (formerly PhonePe Private Limited), one of India’s leading fintech companies, received the final approval from the Reserve Bank of India (RBI) to operate as an online Payment Aggregator (PA) under the Payment and Settlement Systems Act, 2007. This regulatory milestone enables PhonePe to expand its merchant network, with a focus on Small and Medium Enterprises (SMEs).

      - With RBI approval as a Payment Aggregator, PhonePe can now onboard a larger number of merchants, particularly targeting SMEs. This will enhance the reach of digital payment solutions across businesses that were previously underserved, bridging gaps in financial inclusion.

      - The regulatory nod positions PhonePe to actively promote digital financial inclusion in India. By providing accessible, efficient, and secure payment solutions, the company will empower smaller businesses to participate in the digital economy.

Main Point :-   (i) The approval allows PhonePe to expand its payment gateway services, offering features like instant merchant onboarding, developer-friendly integrations, and a smooth checkout experience.

      (ii) A Payment Aggregator acts as an intermediary enabling merchants to accept digital payments without requiring separate individual payment gateway setups.

(iii) The RBI framework ensures consumer protection, secure processing, and operational transparency for all digital payment intermediaries.