Paytm Payment Services Ltd (PPSL), the digital payments arm of One97 Communications, has received full authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator, marking a significant milestone in the company’s compliance and regulatory journey.
The authorisation enables Paytm to onboard new merchants once again and offer its complete suite of online payment solutions, including payment gateway services, subscription payments, settlements, and risk management tools. The approval comes after PPSL completed all regulatory requirements and submitted clarifications relating to foreign direct investment norms, a key hurdle that had previously delayed its application.
Industry experts view the authorisation as a major boost for both Paytm and the broader digital payments ecosystem, particularly at a time when India is witnessing rapid expansion in e-commerce, digital lending and real-time financial services. The licence strengthens Paytm’s competitive position among established payment aggregators, allowing it to expand merchant coverage across sectors such as retail, travel, gaming, D2C brands and small businesses.
PPSL said it will now focus on growing its merchant network, improving success rates across payment instruments and expanding value-added services such as fraud detection, subscription billing and instant settlements. The company is also expected to deepen collaborations with banks, fintech partners and online marketplaces to support high-volume transactions during peak shopping seasons.
Commenting on the approval, a Paytm spokesperson said the authorisation reaffirms the company’s commitment to building a transparent, compliant and innovation-led payments infrastructure that serves millions of consumers and businesses across India.
Analysts note that the licence arrives at an opportune moment as the company continues to streamline operations and strengthen its financial performance. Paytm recently reported improved profitability driven by cost optimisation, increased merchant subscriptions and higher payment volumes across UPI and cards.
With the payment aggregator licence now in place, PPSL is positioned to accelerate growth and reinforce its standing as one of India’s leading digital payment enablers, supporting the country’s ongoing shift towards secure, cashless transactions.
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