PayG, the Hyderabad-based homegrown payment gateway, has received the final nod from the Reserve Bank of India to operate as a licensed payment aggregator, marking a crucial milestone in its efforts to deepen digital commerce infrastructure for India’s micro, small, and medium enterprises.
Founded in 2020, the company joins a select cohort of fintech players formally cleared by the RBI to facilitate digital payments at scale. The regulatory approval enables PayG to continue offering digital payment solutions—spanning credit and debit card acceptance, net banking, and wallet integrations—while remaining fully compliant under India’s evolving payments framework.
The company said the license validates its efforts to build a “secure, inclusive, and innovation-led” ecosystem tailored to small businesses.
“Receiving the RBI’s authorization is a moment of great pride for us,” said Kamal Manohar Jangeti, Chairman of PayG. “It underscores our commitment to regulatory compliance, transparency, and innovation in the fintech sector.”
PayG has positioned itself as a full-stack digital payments provider serving over 1,000 small and medium merchants and 50+ enterprise clients. Its offering includes more than 120 payment options, and the platform emphasizes a no-hidden-fees pricing structure, a feature the company claims improves transparency for retailers new to digital channels.
With India’s push toward formalizing and digitizing MSMEs—who constitute nearly a third of India’s GDP—PayG’s timing comes amid rising pressure on payment firms to align with RBI’s licensing regime. The company’s bet on small-town and street-level merchants places it alongside ecosystem players seeking to bring India’s fragmented offline retail into a more integrated, tech-driven system.
As part of its expansion roadmap, PayG is doubling down on product development and merchant support. The firm is building advanced analytics tools for business insights, integrating credit facilitation options, and working on seamless platform integrations to support back-office operations. These tools are designed to address the operational and capital needs of digitally underserved businesses.
The company is also deepening its collaboration with ONDC (Open Network for Digital Commerce). After a recent trader onboarding initiative in Pune, PayG said it plans to replicate the program in other urban and semi-urban markets. Through such efforts, it aims to make onboarding and digital transition easier for merchants with limited tech exposure.
“We see ourselves as not just a payments company,” Jangeti said. “We are a digital ally for India’s merchants—helping them grow, compete, and lead in the new economy.”
