PhonePe Exits Account Aggregation: A Strategic Pivot

PhonePe, India's largest fintech firm, has exited the account aggregation business, citing insufficient partner onboarding. The company will surrender its NBFC-AA license to the RBI and wind down AA operations. Despite registering 5 crore users, competing priorities hindered further expansion in this sector.

PhonePe, the leading fintech company in India, announced on Friday its exit from the account aggregation business. The firm's inability to onboard enough partners to meet its expectations led to this strategic decision.

In a statement, PhonePe revealed plans to surrender its NBFC-AA license to the Reserve Bank of India and wind down the related operations. The AA business enabled the company to access user financial information with consent to offer services like loans and credit cards.

Despite registering nearly 5 crore users on its platform within two years, PhonePe admitted that competing priorities prevented further partner additions. Consequently, the company will now collaborate with existing account aggregators in the market.