Paytm Payments Services Limited has secured the Reserve Bank of India’s final Certificate of Authorization to operate as a Payment Aggregator—ending nearly three years of regulatory uncertainty and unlocking new growth pathways for India’s fintech major. This approval, disclosed on November 26, follows an in-principle nod in August after Paytm’s re-submission (post Ant Financial’s exit and compliance with foreign investment norms), marking a crucial comeback after its 2022 rejection.
What the RBI Payment Aggregator Nod Means
- Merchant Onboarding Ban Lifted: It can once again onboard new online merchants, expand payment volumes, and offer a full portfolio of digital payment solutions. This directly boosts potential revenue streams as digital payment adoption surges across India’s MSME and enterprise sectors.
- Ecosystem Expansion: The license strengthens Paytm’s position as a full-stack digital payments player at a time when regulatory clarity is vital for both incumbent and challenger fintechs.
Recent Milestones and Global Expansion
- International Push: In 2025, Paytm launched or expanded wholly owned subsidiaries in the UAE, Saudi Arabia, and Singapore—investing nearly ₹20 crore per subsidiary. The company is experimenting with both organic and partnership-driven approaches to tap high-growth international markets outside India.
- AI Innovation: Paytm is increasingly embedding real-time AI for payment processing, risk management, and customer engagement, and recently announced a partnership with Groq to enhance platform intelligence.
- UPI Globalization: Through broader industry collaboration, NPCI and Indian fintechs—Paytm included—are driving UPI’s presence in up to 12 overseas markets (active or in progress), connecting Indian users and cross-border commerce to countries like UAE, Singapore, France, and Mauritius.
Latest Financials (Q2 FY26)
- Operating Revenue: ₹2,061 crore, up 24% YoY—driven by payment services and increased GMV.
- Net Profit: ₹21 crore for the quarter (second consecutive profitable quarter); FY25 profit touched ₹3,196 crore, up 16% YoY.
- Payment Services Revenue: ₹1,223 crore (+25% YoY); net payment revenue up 28% YoY to ₹594 crore.
- EBITDA: ₹142 crore (7% margin), with contribution profit rising 35% YoY to ₹1,207 crore. The company highlights sustained operating leverage and improved payment margins.
- Cash Position: Robust at ₹13,068 crore, providing flexibility for expansion and compliance.
Strategic Outlook
Paytm’s renewed Payment Aggregator license underscores its regulatory compliance, operational resilience, and ability to leverage new opportunities in both domestic and global digital payments. With continued investment in merchant solutions, AI, and international expansion, Paytm remains a bellwether for India’s fintech innovation and digital commerce scale.
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