PhonePe Group has announced its decision to exit the Account Aggregator (AA) business and surrender its NBFC-AA licence to the Reserve Bank of India (RBI). The move, revealed on 7th February, 2025 comes as the company shifts its focus to other business areas while opting to collaborate with existing aggregators instead.
The company has initiated the process of winding down its AA operations and will soon notify its existing users about the transition.
In a statement released by the company, it stated, “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. The good news is that the AA ecosystem itself is flourishing today, and many other players are growing exponentially. Therefore, PhonePe Group has decided to exit the Account Aggregator business and instead partner with other AAs in the market,”
The decision comes nearly 18 months after PhonePe launched the service through its wholly owned subsidiary, PhonePe Technology Services, following the acquisition of an NBFC-AA licence.
The AA service enabled users to securely share financial data—including bank statements, insurance policies and tax filings—with regulated Financial Information Users (FIUs) for purposes such as loan applications, insurance purchases and investment advisory. Integrated within PhonePe’s consumer app, the AA platform allows users to create an interoperable AA handle and access bank statements via a ‘check balance’ feature at no cost.
PhonePe’s AA platform reportedly registered nearly five crore Indian users. However, the company acknowledged that the AA ecosystem has matured significantly, with multiple players scaling up rapidly.
Further, the company added, “We strongly believe that growing the AA ecosystem is crucial for addressing financial inclusion. In 2022, when adoption was still low, we secured our own AA licence in June 2023 to build our own platform and help accelerate its growth. However, given the progress in the sector, we have decided to pivot towards collaborations rather than maintaining our own AA platform.
With this strategic shift, PhonePe aims to focus on its core financial services while leveraging partnerships within the evolving AA ecosystem.
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