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PhonePe Group exits Account Aggregator business

Entrackr · 16d

PhonePe Group exits Account Aggregator business PhonePe Group on Friday announced its decision to exit the Account Aggregator business and instead partner with other account aggregators in the market. According to the company, it will surrender its NBFC-AA license to the RBI and has initiated the wind-down of its account aggregator operations. “We will be reaching out to our AA user base shortly to inform them of our decision and assist them as per regulatory guidelines,” the company said in a press release. In 2023, the Walmart-owned company received in-principle approval from the RBI to operate as an Account Aggregator, followed by the final license in June 2023. “We feel proud that we have managed to register nearly 5 crore Indians onto our AA platform in less than two years. However, due to competing priorities, we have not been able to onboard as many financial information providers (FIPs) to our platform as we would have liked,” the company said. PhonePe is the largest player in the UPI ecosystem with nearly 50% market share and the Sameer Nigam-led company reported more than Rs 5,000 crore in revenue in FY24. The company's losses declined by 28.6% to Rs 1,996 crore during the period.