RBI granted a Certificate of Authorisation (CoA) to Paytm Payments Services Limited (PPSL) — the payments-unit of Paytm — authorizing it to operate as a full-fledged payment aggregator
- This marks the end of a regulatory freeze that had stopped PPSL from onboarding new merchants since late 2022.
- The new licence extends Paytm’s ability to process online payments for merchants across India under the framework of the Payment and Settlement Systems Act, 2007
Why This Approval Is Significant
✅ Merchant Onboarding Resumes — Growth Unlock
With the licence, Paytm can now onboard new online merchants again. This reopens a key revenue stream that had been stalled for years due to regulatory constraints
🔧 Strengthens Fintech Business — Payments Gets a Boost
Payment aggregation is central to Paytm’s business model. With the CoA in place, the payments arm (PPSL) can expand services such as payment processing, payment-gateway solutions, merchant PoS, and digital-commerce support — likely improving financial performance.
📈 Investor & Market Confidence Rising
Markets reacted positively: shares of Paytm parent (One 97 Communications) saw a rise after the approval.
The clearance signals regulatory compliance and stability, which may attract investor attention and support future business expansion.
🏁 Level Playing Field vs Competitors
Earlier, rivals like Razorpay, PayU, Cashfree already held aggregator licences (online/offline/ cross-border). With Paytm’s licence revalidated, it’s again on equal footing — potentially intensifying competition in payment services. Financial Express
What Changed — Overcoming Past Regulatory Hurdles
- Paytm first applied for payment-aggregator licence in 2020. But in November 2022, RBI returned the application citing non-compliance with foreign direct investment (FDI) norms
- After reworking its structure, getting necessary clearances, and submitting fresh documentation, Paytm got an in-principle approval in August 2025.
- The final regulatory nod — the COA granted on November 26 — restores full authorisation under the regulatory framework.
What’s Next — What to Expect for Paytm & Users
- Paytm can rapidly scale up its merchant network, especially for online payments, e-commerce, and digital services.
- For consumers and merchants — broader adoption could mean more payment-options, ease of onboarding, and possibly new offerings like subscription-billing, POS solutions, and merchant credit.
- As fintech competition intensifies, expect growth in payment wallet services, Buy-Now-Pay-Later (BNPL), merchant-credit solutions, and expanded digital-commerce ecosystem.
- For shareholders and the market — improved revenue visibility, revived growth prospects, and greater confidence in regulatory compliance.
Final Word
RBI’s clearance of Paytm Payments Services as a payment aggregator marks a major turning point for the company. The licence restores its core payments-processing business, enables merchant onboarding, and positions Paytm strongly in India’s competitive fintech landscape. For users, businesses, and investors — it’s a new chapter in India’s digital payments story.
