Groww Pay Secures Crucial Payment Aggregator License from RBI to Expand Payment Services

• ByStartupStory     |    May 1, 2024

Groww Pay, the UPI payments division of the popular stock brokering platform Groww, has been granted a payment aggregator (PA) license by the Reserve Bank of India (RBI). This milestone, achieved on Monday, enhances Groww Pay’s capabilities, enabling it to establish direct payment interfaces for merchants and streamline ecommerce transactions through its UPI app.

Groww Pay was launched last year and has since been operating under a third-party payments app license provided by the National Payments Corporation of India (NPCI), utilizing Yes Bank’s banking infrastructure to offer payment services. The new PA license marks a pivotal evolution for Groww Pay, expanding its service offerings and financial footprint in India’s burgeoning digital economy.

Since the beginning of 2024, the RBI has awarded the PA license to over 20 companies, a substantial increase from the previous year, reflecting the central bank’s commitment to enhancing the payment ecosystem. Groww Pay joins a prestigious list of PA licensees including Amazon Pay, Zomato, and PayU, which were also approved this year.

The RBI is also focusing on tightening regulations around offline payment aggregators to bolster security and consistency in transaction processing. The central bank has released two consultation papers that propose extending the regulatory framework governing online PAs to those operating in offline environments. This initiative aims to unify the guidelines on data collection and storage, ensuring robust oversight across all payment platforms.

Groww Pay’s new status as a licensed payment aggregator underlines its growth trajectory and strategic expansion plans in the fintech sector. As digital payments continue to evolve, Groww Pay is well-positioned to play a significant role in shaping the future of financial transactions in India.

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