PhonePe announced it has received final authorisation from the Reserve Bank of India to operate as a payment aggregator, a move that strengthens its position in India’s fast-growing digital payments ecosystem. With this licence, the company can directly onboard merchants, streamline payment processing, and enhance its payment gateway offerings.
Focus on Small and Medium Enterprises
The fintech major said the approval will enable it to deepen services for small and medium enterprises (SMEs), a segment often underserved in digital payments. Tools such as faster merchant onboarding, developer-friendly plug-ins, and enhanced security measures are expected to improve payment success rates and help businesses expand their digital footprint.
“PhonePe is now well-positioned to accelerate financial inclusion by providing accessible payment solutions to businesses that were previously underserved,” said Yuvraj Singh Shekhawat, Chief Business Officer for Merchant Business at PhonePe.
Expanding Scale and Reach
Founded in 2016, PhonePe has rapidly grown into one of India’s largest fintech platforms. As of August 2025, it boasts more than 650 million registered users and a merchant network of 45 million. The platform processes over 360 million transactions daily, with an annualized total payment value of ₹150 lakh crore.
Diversified Offerings Beyond Payments
While payments remain its core, PhonePe has steadily diversified. Its portfolio now spans insurance distribution, lending, and wealth management products. It has also ventured into consumer internet services, including Pincode, a hyperlocal ecommerce app, and the Indus AppStore, an Android-based application marketplace positioned as an alternative to global app stores.
Strengthening India’s Digital Economy
Industry experts say RBI’s authorisation reinforces trust in PhonePe’s compliance and operational standards, allowing it to play a bigger role in India’s fintech landscape. The approval is also expected to drive competition in the payment gateway space, offering SMEs more choices at a time when digital adoption is accelerating across the country.
