Paytm Payments Services Limited Secures Payment Aggregator License

Paytm Payments Services Limited has received the Reserve Bank of India’s Certificate of Authorization as a Payment Aggregator, as stated in the company’s filing with the stock exchange on November 26. This development is significant for Paytm and comes after the banking regulator provided in-principle approval in August of this year.

Background of Paytm’s Licence Application

Paytm Payments Services re-applied for the Payment Aggregator licence in September 2024, following the rejection of its previous application in November 2022 due to concerns surrounding foreign investment regulations. The in-principle approval enabled the company to conduct system audits and complete other required procedures before obtaining the final approval.

Implications of the Licence

The Payment Aggregator licence empowers Paytm to onboard additional online merchants, enhance payment volumes, and ultimately increase revenue streams.

Financial Performance

For Q2 FY26, Paytm reported a rise in operational revenue, reaching Rs 2,061 crore, up from Rs 1,659 crore in Q2 FY25. However, despite the revenue increase, the company’s net profit saw a sharp decline of 98% Year on Year, plummeting to Rs 21 crore from Rs 930 crore in the corresponding quarter last year. This downturn is primarily attributed to the lack of a one-time gain that had previously inflated the results and an impairment loss recorded in the current quarter.