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PhonePe exits Account Aggregator business, will partner with other AAs

PhonePe entered the AA space in June 2023, aiming to accelerate the ecosystem's growth. At the time, the adoption of AA services was still low, and the company sought to boost financial inclusion by launching its own AA platform.
PhonePe, a prominent digital payments platform, has decided to exit its account aggregator (AA) business, which it entered in 2021. Instead of continuing to operate as an AA, PhonePe will now partner with other account aggregators to provide services to its customers. This strategic pivot aims to leverage the existing infrastructure of other AAs to enhance service delivery without the overhead of managing the AA operations internally. The move is part of PhonePe's broader strategy to focus on its core payment and financial services while still benefiting from the account aggregator ecosystem. This decision comes at a time when the AA framework in India is gaining traction, with increasing adoption by financial institutions for sharing financial data securely.

Read the Full cnbctv18 Article at:
[ https://www.cnbctv18.com/business/finance/phonepe-exits-account-aggregator-business-will-partner-with-other-aas-19554690.htm ]