Paytm Secures Full RBI Payment Aggregator License for 2025

Paytm Secures Comprehensive Payment Aggregator License

One 97 Communications Ltd, the parent company of Paytm, announced that its wholly-owned subsidiary, Paytm Payments Services Limited (PPSL), has received final authorization from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA). The latest approval, granted on December 17, 2025, covers physical (offline) payments and cross-border transactions, including both inward and outward flows. This development completes the company's licensing requirements, as it already secured the online PA license on November 26, 2025.

This comprehensive authorization allows PPSL to offer end-to-end payment aggregation services across all major segments. The company can now provide a unified platform for merchants to accept payments through online websites, mobile apps, in-store point-of-sale (POS) devices, and international channels. This positions Paytm to strengthen its merchant ecosystem and expand its footprint in both domestic and international markets.

Details of the RBI Authorization

The regulatory approvals from the RBI were granted in two stages, providing PPSL with a complete operational framework under the Payment and Settlement Systems Act, 2007.

The RBI has stipulated that the payment system must operate in compliance with all applicable regulations and guidelines. Any failure to adhere to these conditions could result in regulatory action, including operational restrictions or the withdrawal of the authorization.

Impact on Business Operations

The full suite of PA licenses is a significant milestone for Paytm, solidifying its role in India's digital payments landscape. By enabling offline and cross-border payment processing, the company can cater to a wider range of merchant needs, from small local stores to large enterprises with international operations. This move is expected to open new revenue streams and enhance the company's competitive edge against other payment gateways and fintech firms.

The ability to manage cross-border transactions is particularly important, as it allows Paytm to tap into the growing market for international e-commerce and remittances. This expanded capability supports the company's long-term growth strategy and its goal of becoming a comprehensive financial services provider.

Market Reaction and Stock Performance

Following the announcement, the stock of One 97 Communications Ltd experienced some volatility. On December 17, 2025, the share price closed at ₹1,264.00 on the NSE, down ₹17.40 or 1.36% from its previous close. The stock opened the session at ₹1,282.00 and traded between an intraday high of ₹1,293.90 and a low of ₹1,260.00.

Despite the minor dip on the day of the news, the stock has shown strong performance over a longer period. In the last six months, Paytm's share price has surged by over 44%, and it has gained more than 27% over the past year. The company's market capitalization stands at approximately ₹82,110 crore.

Recent Financials and Analyst Views

In its second-quarter results for FY26, Paytm reported a 24% year-on-year increase in revenue from operations, which reached ₹2,061 crore. However, its consolidated net profit saw a sharp decline to ₹21 crore, primarily due to the absence of a one-time gain that was recorded in the same quarter of the previous fiscal year.

Brokerage firms have offered mixed but generally constructive views on the company's prospects. Geojit Financial Services reiterated a 'HOLD' rating with a revised target price of ₹1,481. The firm acknowledged Paytm's strong operational performance, driven by customer retention and merchant traction, but pointed to regulatory uncertainties and premium valuation as near-term concerns.

ICICI Securities maintained a positive stance, highlighting the company's significant earnings growth potential from its payments and loan distribution businesses. The brokerage noted that product innovations and a focus on free cash flow maximization make the risk-reward profile favorable, though regulatory challenges remain a key risk.

Strategic Importance and Future Outlook

Securing the complete PA license from the RBI is a critical strategic achievement for Paytm. It removes a significant regulatory overhang and provides a stable foundation for expanding its merchant services. The ability to offer a single, integrated payment solution for online, offline, and cross-border transactions enhances its value proposition for businesses.

Looking ahead, Paytm is expected to leverage this comprehensive license to deepen its engagement with its merchant partners and accelerate growth in transaction volumes. The company's continued focus on AI-driven product enhancements and the consolidation of financial products on its platform are likely to support its long-term operational stability and market position.