Citrus gives up wallet licence following PayU acquisition

BENGALURU: Citrus Payment Solutions, the Mumbai-based fintech startup that was acquired by Naspers-owned global payments player PayU last year, has surrendered its wallet licence as per the Reserve Bank of India's latest list of entities holding prepaid payment instrument (PPI) licences.

The company's cofounder and now PayU India CEO Amrish Rau said that its customers will be migrated to the PayU Money wallet. However, PayU Money sees only 1% of the total transactions of PayU, which currently processes more than 3 million transactions a day.

Citrus Payment Solutions' licence was cancelled on April 19, as per the regulator's latest list of payment system operators updated on Wednesday . “We had to do it (surrender the licence) since Citrus and PayU both had one. We have seamlessly migrated the Citrus consumers under the PayU licence,“ Rau said.

RBI is in the process of laying down guidelines for prepaid payment instruments, which is likely to push them to implement full knowyour-customer norms and higher security factors.