Paytm Payments Services Limited Receives Authorisation as Online Payment Aggregator

Paytm Payments Services Limited (PPSL), which is entirely owned by One 97 Communications Limited, has been granted in-principle authorisation by the Reserve Bank of India (RBI) to function as an online payment aggregator under the Payment and Settlement Systems Act, 2007.

This approval follows PPSL’s re-application for the licence submitted in September 2024, after the central bank returned its previous application in November 2022. The licence enables Paytm to onboard new online merchants, increase payment volumes, and elevate revenues, all while eliminating regulatory uncertainty and reinforcing its standing in the digital payments sector.

According to the RBI’s correspondence, PPSL is required to comply with the guidelines for payment aggregators and gateways that were issued in March 2020 and other subsequent clarifications.

Financial Growth and Profitability

This news follows shortly after Paytm announced its quarterly results. The company’s revenue from operations saw a year-on-year increase of 28%, rising to Rs 1,918 crore in Q1 FY26 from Rs 1,501 crore in Q1 FY25. Additionally, the company has achieved profitability, reporting a net profit of Rs 123 crore in Q1 FY26, contrasting with a loss of Rs 840 crore in Q1 FY25.