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Well I worked With CashFree and Razorpay and when I was Building RADHE STORES in conversation about the account aggregation (AA) Topics My managers Would Tell Me To avoid aggregation Method As They constantly Had to Overspend to keep The tech stack Compatible to iso and PCI DSS norms and work with Like 5000 providers to keep User Financial metrics in one place and On Top RBI keep Changing Rules Like It's a Bio So it's a headache and it's Not feciable For Payment providers But is Feciable For lending NBFC As They Have to Give Loan Out on this metrics and Phonepe never loaned Out They had partnered with Providers and so They Voluntary Excited The AA

They probably saw the regulatory headaches coming. RBI compliance in this sector is still evolving, and managing customer consent, security, and privacy is expensive. Maybe PhonePe didn’t want another NPCI-like dependency?

Maybe the tech infrastructure costs weren’t worth it? Running an AA service means high-end encryption, API maintenance, and compliance costs. They probably realized that profitability was too far away.

There’s no single reason for PhonePe’s exit. It’s likely a mix of regulatory uncertainty, high costs, slow monetization, and better ROI in other verticals. While some could see this as a missed opportunity, others think it’s a smart strategic move to focus on lending, insurance, and UPI-based payments instead.