Groww exits payment aggregator business, surrenders RBI-approved PA licence after two years
Stock brokerage platform Groww has reportedly exited the payments space after surrendering its payment aggregator (PA) license, two years after receiving approval from the Reserve Bank of India (RBI).
According to a report by The Head and Tale, the Bengaluru-based fintech company withdrew its PA license without making an official announcement. This move marks a strategic move away from operating as a payment intermediary.
The specific reason behind the exit remains unclear, as Groww has not publicly disclosed why it made such a move.
The stockbroker had received approval from the RBI for its payments arm Groww Pay in April 2024; This approval allowed it to onboard merchants and process transactions directly as a payment aggregator.
Groww will focus on its core business
Groww entered the payments segment in 2023 with a UPI app that allows customers to make bill payments, recharges and credit card refunds. The latest move also signals a renewed focus on the prime brokerage and asset management business, which has scaled rapidly over the years.
In India, a payment aggregator (PA) license is mandatory for fintech firms to process digital payments, requiring a minimum net worth. ₹25 crore, RBI authorization and strict compliance with KYC/AML standards.
Groww, whose parent company is Billionbrains Garage Ventures Ltd, officially went public on November 12, 2025 and is listed on both stock exchanges (NSE and BSE). ₹6,632.3 crore IPO was open for public subscription from November 4 to November 7, 2025 and the price range was as follows: ₹95– ₹100 per share, ultimately coming to market at a premium.
Many companies are giving up PA licenses
Groww isn’t the only company to give up its PA or wallet license. In early 2024, food delivery giant Zomato also handed over its payment aggregator and wallet license.
Zomato, whose parent company is Eternal, had received approval from the RBI in 2022 but exited the segment without disclosing specific reasons as it continues to focus on food delivery and express commerce businesses.
The developments come at a time when the regulatory environment for payment aggregators is changing. Between 2021 and 2023, the RBI adopted a stricter approach, during which many applications experienced delays or were returned due to compliance deficiencies.
But the regulator has shown more flexibility in 2025, streamlining the approval process and allowing more companies to navigate the regulatory framework for payment aggregators.
Since then, the central bank has accelerated approvals and issued licenses to players such as Paytm, Razorpay, PayU, Pine Labs, Easebuzz and Airpay in online, offline and cross-border categories, according to the Entrackr report.
