Paytm Payments Services Limited, a subsidiary of the fintech company Paytm, has received final authorisation from the Reserve Bank of India to operate as a payment aggregator. The company confirmed the approval in a filing with the exchanges, stating that the central bank granted the Certification of Authorisation on November 26, 2025.
The approval comes three months after the subsidiary received an in principle authorisation from the central bank in August. With this licence, Paytm Payments Services will be able to deploy and manage its point of sale devices and soundboxes across merchant outlets. The authorisation will also allow the firm to offer multiple payment options, including credit cards, UPI and wallets.
Holding a payment aggregator licence will help the company reduce payment processing charges, which usually range between 0.5 percent and 2 percent depending on transaction volume. It will also improve merchant onboarding and streamline the checkout process.
The development follows the company’s recent decision to invest up to Rs 2250 crore in Paytm Payments Services through a rights issue. At the time, the company said the capital infusion would support the subsidiary’s working requirements and strengthen its net worth. The approval also comes shortly after a major restructuring, where Paytm transferred its offline merchant payments business to the subsidiary to meet regulatory requirements.
These announcements coincide with the company’s financial results for the second quarter of FY26. Paytm reported a net profit of Rs 21 crore during the quarter, remaining in the black despite a sharp 98 percent year on year decline. Last year’s numbers had included a one time gain of Rs 1345 crore from the sale of Paytm Insider. During the latest quarter, the company also recorded a one time impairment loss of Rs 190 crore related to a loan issued to its now closed gaming joint venture First Games. Operating revenue rose 24 percent year on year and 7 percent sequentially to Rs 2061 crore.
Paytm’s stock has shown strong momentum over the past year. Shares have gained more than 45 percent in the last twelve months and are up 26.4 percent on a year to date basis. This week, BNP Paribas Financial Markets and Integrated Core Strategies sold shares worth Rs 1740.8 crore through block deals. Last week, Elevation Capital sold 1.19 crore shares for Rs 1556 crore.
Shares of Paytm closed on Monday at Rs 1286.35 on the BSE, up 3.48 percent.
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