Paytm-parent One 97 Communications Ltd. is set to consolidate its online and offline merchant payments businesses under a single subsidiary to comply with regulations.
The board approved the transfer of the offline merchants payment business to Paytm Payments Services Ltd. on Wednesday. The offline business consists of merchants serviced through QR, soundbox, EDC machine payments, etc.
The transfer is being undertaken to comply with the Reserve Bank of India's rules on payment aggregators issued last month, according to a stock exchange filing.
PPSL has in-principle approval from the RBI to carry out the PAO (Payment Aggregator Online) business. This will ensure that all payment aggregation activities are housed within one regulated entity and will build efficiency and synergy within the group, the company said.
The transfer will be implemented through a slump sale on a going concern basis, subject to the approval of shareholders. Since this is a transfer to a wholly owned subsidiary, it will not impact the financials of One 97 Communications on a consolidated basis, the filing said.
The completion of the transfer is expected on or before Dec. 31.
The offline merchant payment segment generated an income of Rs 2,580 crore in the financial year 2025, representing 47% of Paytm's total revenue on a standalone basis.
The net worth of the undertaking as of March 31, 2025, is approximately Rs 960 crore.
Shares of Paytm were up 2.6% at Rs 1,275.9 apiece on the BSE, as of 3:25 p.m., compared to a 0.7% gain in the benchmark Sensex. The stock has risen 75% in the last 12 months and 29% so far this year.
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