Bengaluru-based fintech platform CRED has received final authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator, marking an important regulatory milestone for the company.

The licence allows CRED to directly facilitate digital payments between merchants and customers. As a payment aggregator, the company can now onboard merchants onto its platform, collect payments on their behalf through multiple payment instruments, and manage settlements and refunds.

The authorisation was granted to CRED’s payments arm, Dreamplug Paytech Solutions Private Limited, which will now operate a payment system directly under the RBI’s supervision. This development places the fintech firm among a growing group of regulated digital payment service providers in India.

For CRED, which began primarily as a credit card bill payment platform for high-credit-score users, the new licence opens the door to expanding deeper into India’s rapidly evolving digital payments ecosystem.

Credits: The Pioneer

What the Payment Aggregator Licence Means

A payment aggregator licence is a crucial regulatory approval in India’s fintech sector. It enables companies to act as intermediaries between merchants and customers, facilitating online transactions across various payment methods such as cards, UPI, net banking, and wallets.

With this licence, CRED will be able to sign up merchants directly and process payments for them through its platform. The company will also manage the entire payment lifecycle, including transaction processing, settlement of funds, and handling customer refunds when required.

Operating as a payment aggregator also means stricter compliance requirements, including oversight from the RBI and adherence to regulations around security, transparency, and financial governance.

For CRED, gaining this authorisation strengthens its position as a full-stack fintech platform rather than just a consumer-facing rewards and payments app.

Strengthening Its Fintech Ambitions

The approval adds to CRED’s existing regulatory credentials. The company already holds a Prepaid Payment Instrument (PPI) licence from the RBI, which allows it to issue and operate digital wallets.

With both the PPI and payment aggregator licences now in place, CRED has built a stronger regulatory foundation to expand its financial services offerings. The company has gradually diversified beyond credit card bill payments into areas such as lending, rent payments, and commerce.

Industry observers believe the payment aggregator licence could allow CRED to create new merchant-focused products, deepen its payment infrastructure, and potentially compete more directly with established payment processing players in India.

The move also aligns with the broader growth of digital payments in the country, which has been driven by increasing smartphone adoption, the success of UPI, and a rapidly digitising merchant ecosystem.

Improving Financial Performance

The regulatory approval comes at a time when CRED has been working to improve its financial performance.

According to the company, its operating losses narrowed significantly in the financial year 2025. CRED reported operating losses of ₹298 crore in FY25, a sharp improvement from ₹609 crore in FY24.

At the same time, the company’s consolidated operating revenue grew by 16 percent to ₹2,735 crore during the year. The growth was supported by an expansion of its product portfolio and increasing user engagement across its services.

The improvement in financial metrics signals CRED’s efforts to move toward a more sustainable business model after years of heavy spending to acquire and retain users.

Building on Trust and Member Base

CRED founder Kunal Shah said the RBI authorisation reflects the trust the company has built across the financial ecosystem.

According to Shah, CRED has focused on maintaining high standards of reliability, transparency, governance, and performance since its early days. The payment aggregator licence, he noted, will help the company further enable financial progress for its users.

CRED currently serves a member base of more than 1.5 crore users, primarily consisting of individuals with high credit scores. The platform initially attracted attention by offering rewards and benefits for timely credit card bill payments, gradually evolving into a broader financial services platform.

Credits: The Economic Times

The Road Ahead

As India’s fintech sector continues to mature, regulatory approvals are becoming increasingly important for companies seeking long-term growth.

With the RBI’s payment aggregator licence now secured, CRED is better positioned to expand its payments infrastructure and deepen relationships with merchants and consumers alike.

The move could mark the beginning of a new phase for the company, as it transitions from a niche credit-card-focused app into a larger digital payments and financial services ecosystem.