Paytm shares surge as RBI gives final nod for payment aggregator license

Paytm is back in focus as its subsidiary, Paytm Payments Services Limited (PPSL), secures the Reserve Bank of India’s final approval to operate as a payment aggregator. The clearance comes after months of anticipation and sets the stage for further growth in Paytm’s payments ecosystem.

RBI Grants Final Approval to Paytm’s PPSL

Shares of One97 Communications Ltd., Paytm’s parent company, gained attention on Thursday, November 27, following the Reserve Bank of India’s (RBI) final approval for its subsidiary, Paytm Payments Services Limited (PPSL), to operate as a payment aggregator. This approval allows PPSL to legally onboard merchants and facilitate online transactions on their behalf.

The final nod comes just over three months after the RBI had granted in-principle approval on August 12, marking a major milestone for Paytm’s payments business.

What the Certificate of Authorization Means

Under the Payment and Settlement Systems Act, 2007, PPSL has been issued a Certificate of Authorization, enabling it to provide full-fledged payment aggregator services. With this license, PPSL can now officially partner with merchants and process online payments, offering a complete ecosystem for businesses looking to expand digitally.

The company has indicated that growth from PPSL’s payment aggregator operations will be reflected in its consolidated financial statements, potentially boosting Paytm’s revenue in the upcoming quarters.

Strategic Boost for Paytm’s Payments Expansion

The RBI clearance aligns with Paytm’s renewed focus on expanding its payments ecosystem. Over the past year, the company has been enhancing its merchant services, digital wallet offerings, and payment solutions to capture a larger market share in India’s fast-growing digital payments sector.

Paytm’s leadership believes that this authorization will enable the company to scale operations, improve merchant onboarding, and offer more seamless online transaction experiences, strengthening its competitive positioning in the fintech space.

Paytm Stock Performance Update

Following the RBI’s approval, Paytm shares settled 3.75% higher on Wednesday at ₹1,288. Despite this positive movement, the stock remains over 40% below its IPO price of ₹2,150, highlighting both the market optimism and the challenges Paytm faces in reclaiming its initial valuation.

Analysts suggest that the payment aggregator license could be a turning point, providing additional revenue streams and long-term growth potential for the company.

Merchant and Customer Benefits

With PPSL now officially licensed, merchants partnering with Paytm can benefit from:

• Streamlined online transaction processing

• Access to a secure and regulated payment platform

• Enhanced support for digital payments and settlement efficiency

For customers, this translates into more reliable payment experiences across various online platforms where Paytm’s services are integrated.

Outlook for Paytm’s Payments Business

Paytm is expected to leverage this authorization to drive merchant acquisition aggressively while strengthening its ecosystem of digital financial services. The move could also improve investor confidence, signaling that the company is successfully navigating regulatory approvals while pursuing long-term business growth.

With India’s digital payments market expanding rapidly, Paytm’s newly authorized operations could play a significant role in capturing additional market share and driving higher transaction volumes in the near future.

Conclusion:

The RBI’s final approval for PPSL as a payment aggregator is a key milestone for Paytm, offering both operational and strategic advantages. With the ability to onboard merchants and process online transactions seamlessly, Paytm’s payments business is poised for accelerated growth, potentially benefiting shareholders and strengthening the company’s position in India’s booming fintech ecosystem.