PhonePe to shut account aggregator business

Fintech firm PhonePe on Friday said that it has decided to wind down its account aggregator (AA) business and surrender its NBFC-AA licence to the Reserve Bank of India.

The company had launched its AA services in 2023 through its wholly-owned subsidiary PhonePe Technology Services (PTSPL). The company said it had registered around 50 million customers on its AA platform in 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,” it said.