Paytm has completed the transfer of its offline merchant payments business to its wholly owned subsidiary, Paytm Payments Services Limited. The shift comes after the subsidiary received the Reserve Bank of India license to operate as a Payment Aggregator.
The company said the move is part of an internal restructuring plan that brings all payment related operations under a single authorised entity. It added that this consolidation aligns with regulatory requirements and is expected to improve operational efficiency.
Paytm currently has around 1.4 crore offline merchants using its payment subscription devices, including soundboxes, point of sale machines and its online payment gateway. With the RBI approval in place, PPSL can now restart onboarding new merchants. This process had been on hold since November 2022 due to regulatory restrictions.
Along with the transfer of the business, two senior leadership members from Paytm will also move to PPSL. The company confirmed that Ripunjai Gaur, chief operating officer of offline payments, and Deependra Singh Rathore, chief technology officer of payments, will now serve under the Payment Aggregator entity. They will no longer be part of the senior management team at the parent company.
Paytm stated that bringing these roles under the newly authorised subsidiary will help strengthen the payments function and support the expansion of merchant services.
The transfer has been executed at the book value of the assets and liabilities. One 97 Communications Limited received a lump sum cash consideration. As of March 31, 2025, the book value of the business stood at around Rs 960 crore. The agreement was signed on November 28, 2025, and the transfer became effective from midnight on November 30, following shareholder approval on November 23.
The company noted that the transaction does not change the ultimate ownership structure since it involves a holding company and its wholly owned subsidiary. All economic interest continues to remain with the parent company.
Paytm said that the growth expected from the newly licensed operations will be visible in the consolidated financial statements of the holding company.
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