Axis Bank’s digital platform Freecharge received in-principle approval from the Reserve Bank of India to operate as a payment aggregator. The bank said this approval covers both online and physical categories starting in FY27. Meanwhile, digital transactions showed strong growth, accounting for 98% of total financial transactions during the quarter.
Synopsis
Axis Bank's digital payments platform Freecharge has received in-principle approval from the Reserve Bank of India. The approval allows Freecharge to operate under PA-O1 and PA-P1 categories starting in FY27. The bank has reported a 34% year-on-year growth in UPI transaction value for July-September. Digital transactions represented 98% of the total financial transactions during this quarter. Axis Bank continues to expand its digital payments operations, reflecting ongoing investment in technology.
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Axis Bank's digital payments platform Freecharge Payment Technologies Private Limited received in-principle approval from the Reserve Bank of India (RBI) to operate as a payment aggregator under both online and physical Payment Aggregator categories during the second quarter of FY27, the lender said in an investor presentation on Saturday.
The approval comes as Axis Bank continues to expand its digital payments franchise, with the lender reporting a 34% year-on-year growth in total UPI transaction value in the July-September quarter.
Axis Bank maintained a market share of around 38% by transaction volume in the UPI payer payment service provider (PSP) segment in Q2FY27, while recording the lowest technical decline rates among the top 50 UPI remitter members, according to its quarterly results.
Digital transactions accounted for 98% of the bank's total financial transactions by individual customers during the quarter, highlighting the growing role of digital channels in its banking operations.
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The bank's mobile application, Axis Mobile, had around 16 million monthly active users, including approximately 12 million non-Axis Bank customers. The lender also continued to expand its merchant payments business, where it held a market share of around 25.7% in terminal acquiring, based on RBI data as of August 2026.
Freecharge's regulatory approval marks a development in Axis Bank's digital payments operations. Payment aggregators facilitate online payments by enabling merchants to accept payments from customers through multiple payment instruments and channels.
Axis Bank has been investing in payments innovation and digital banking as part of its broader technology strategy. The lender also introduced an AI Soundbox in partnership with Hitachi Payment Services during the quarter, alongside other initiatives aimed at strengthening its digital offerings.
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