Paytm Payments Services Gets RBI Green Signal for Online Payment Aggregator Licence

Paytm Payments Services Limited (PPSL), a fully owned arm of One 97 Communications Limited (OCL), has secured the Reserve Bank of India’s (RBI) ‘in-principle’ approval to function as an online payment aggregator under the Payment and Settlement Systems Act, 2007.

In a stock exchange filing on Tuesday, the company stated:

"Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications Limited (OCL or the Company), for a Payment Aggregator (PA) licence. We would like to inform you that Reserve Bank of India (“RBI”) has granted ‘in-principle’ authorisation to PPSL vide its letter…dated August 12, 2025, to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007."

End of Merchant Onboarding Ban

The RBI’s nod officially lifts the restrictions placed on PPSL on November 25, 2022, which had prevented the company from onboarding new merchants. This development marks a major boost for Paytm’s payments arm, enabling it to aggressively expand its merchant network once again.

Approval Timeline and Background

Paytm first applied for the Payment Aggregator licence in March 2020, but the process faced delays due to foreign direct investment (FDI) compliance concerns. The clearance comes less than two weeks after Alibaba Group fully exited One 97 Communications, selling its remaining stake in the company.

The approval is expected to strengthen Paytm’s role in India’s growing digital payments ecosystem, allowing it to offer a seamless platform for merchants to accept online transactions.

Industry Impact

This move is expected to:

• Boost merchant acquisition for Paytm.

• Increase competition in the online payments sector.

• Enable smoother onboarding for businesses seeking digital payment solutions.

With this regulatory clearance, Paytm can now compete more effectively with other major players in the payment aggregator space, such as Razorpay, Cashfree, and PayU.

About Paytm Payments Services

Paytm Payments Services Ltd. (PPSL) is the wholly-owned subsidiary of One97 Communications Ltd., the parent company of Paytm. PPSL is responsible for operating as a payment aggregator, offering a range of services that enable businesses to accept online payments.

Key Services and Offerings of Paytm Payments Services

Paytm Payments Services offers a comprehensive platform for merchants to accept payments from various sources, including:

• Payment Gateway: A secure and reliable platform for businesses to integrate into their websites or apps, allowing customers to pay using credit cards, debit cards, net banking, UPI, and other payment methods.

• QR Codes: Both physical and digital QR codes that enable merchants to accept payments from customers who use any UPI-enabled app. The company also offers the Paytm Soundbox, an IoT-enabled device that gives instant audio confirmation of a successful transaction.

• Subscription Payments: Solutions for recurring payments, including UPI Autopay, which automates payments for subscriptions and bills.

• International Payments: A platform that allows merchants to accept payments from over 200 countries, with real-time currency conversion and settlements in Indian Rupees (INR).

Latest Developments and Regulatory Status

On August 12, 2025, PPSL received "in-principle" approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator. This significant development also lifted the RBI's previous restriction, which had barred the company from onboarding new merchants since November 2022. The approval is a major boost for Paytm's digital payments business and is subject to PPSL's compliance with a comprehensive system and cybersecurity audit, which must be completed within six months. The news of the approval has also led to a positive surge in the stock price of One97 Communications.