PB Fintech Arm Gets In-Principle Nod As Payment Aggregator

Listed insurtech company PB Fintech’s wholly-owned subsidiary PB Pay has received “in-principle” approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator (PA). 

“… We are pleased to inform that RBI has granted an in-principle authorisation to PB Pay to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007 vide its letter no. CO. DPSS.AUTH.No. S48/02.27.004/2025-26 dated April 15, 2025,” PB Fintech said in a filing with the exchanges.

The company, however, said that the authorisation is subject to compliance with the RBI guidelines for payment aggregators and gateways. 

It is pertinent to note that the PA framework was first introduced by the central bank in March 2020. The licence is mandatory for acquiring merchants and delivering digital payment acceptance solutions.

This comes more than a year after the fintech major, in March 2024, first announced plans to incorporate PB Pay to enter the payment aggregation business. At the time, the company said that the new entity would be set up with a proposed authorised share capital of INR 50 Cr and a proposed paid-up share capital of INR 27 Cr. 

For the uninitiated, an “in-principle” nod allows PB Pay to onboard new merchants, yet final approval typically takes anywhere between six to 18 months. However, the entity will still have to meet certain thresholds for minimum net worth before commencing full operations.

Once it gets the final authorisation from the RBI, PB Pay will be able to offer payment processing services. This will pit the company directly against the likes of industry giants like Razorpay, Cashfree, CCAvenue and PayU India, among others. 

The development comes at a time when the listed insurtech major has pushed the pedal on its healthtech foray. The company recently announced plans to infuse INR 829 Cr in a new healthcare business to diversify its revenue mix. On top of this, once PB Pay commences operations, the new entity will open up another new revenue stream for the company. 

Meanwhile, on the financial front, PB Fintech saw its consolidated profit after tax (PAT) soar 92% to INR 71.54 Cr in the third quarter (Q3) of the fiscal year 2024-25 (FY25) from INR 37.23 Cr in the year-ago quarter. Meanwhile, operating revenue zoomed 48% to INR 1,291.62 Cr during the quarter under review from INR 870.89 Cr in Q3 FY24.

Shares of PB Fintech closed yesterday’s trading session 5.82% higher at INR 1621.65 apiece on the BSE.