One 97 Communications Ltd., the parent of Paytm, on Friday said its wholly owned step-down subsidiary Paytm Europe Payments SA has been granted a Payment Institution licence by Luxembourg's financial regulator, the Commission de Surveillance du Secteur Financier (CSSF).
According to the company's exchange filing, Paytm Europe was informed by the regulator on July 2 that it had received the licence and had also been registered on Luxembourg's official list of payment institutions, effective the same date.
The approval authorises Paytm Europe to offer a range of regulated payment services. These include the execution of payment transactions, transfers between payment accounts, credit transfers, standing orders and the acquiring of payment transactions.
The development follows Paytm's January 2026 disclosure regarding the incorporation of Paytm Europe in Luxembourg. The subsidiary is owned by Paytm Cloud Technologies Ltd., which is a wholly owned Indian subsidiary of One 97 Communications.
ALSO READ: Paytm Shares Rise After Reports Of Plan To Hire 4,000 Employees Amid AI Push
Last month, a report by Bloomberg News said that Paytm is planning to increase its headcount by 10%. The firm currently has about 40,000 employees, while it intends to lay off 1% of its staff, or about 400 people, after the current performance appraisal cycle, the news portal said citing a company spokesperson said. These job cuts come after significant reductions last year.
In May, global financial institutions, including Goldman Sachs, Societe Generale, and Citigroup Global Markets, have collectively acquired a 1.34% stake in One 97 Communications, the parent company of Paytm, from SAIF Partners and Elevation Capital for Rs 963 crore through open market transactions.
Other foreign investors participating in the transaction included Ghisallo Capital Management, BNP Paribas, Copthall Mauritius Investment, and Hong Kong-based Viridian Asset Management.
ALSO READ: Paytm Block Deal: Goldman Sachs, Societe Generale And Other Mop Up Rs 960-Crore Stake
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.