Paytm Transfers Offline Merchant Business To PPSL Post RBI’s Nod For Payment Aggregator License
PPSL received RBI approval for operating as a payment aggregator on Nov. 26, following which the transfer process began on Nov. 28.
Paytm-parent One 97 Communications Ltd. has shifted its offline merchants' payment business to its wholly-owned subsidiary, Paytm Payments Services Ltd. The transfer will be effective from the midnight of Nov. 30, according to an exchange filing.
PPSL had received RBI approval for operating as a payment aggregator on Nov. 26, following which the transfer process began on Nov. 28.
"The Business Transfer Agreement for the transfer of the Offline Merchants Payment Business to PPSL has been executed on November 28, 2025 and the said transfer shall be effective from midnight of November 30, 2025," Paytm stated in a regulatory filing on Friday.
In August, the RBI granted in-principle authorisation to Paytm and asked the company to undertake a system audit that also includes a cybersecurity audit and submit the report within six months.
The central bank had previously declined Paytm's application, citing non-compliance with foreign direct investment norms. PPSL received approval from the central government for downstream investment from the parent company in August 2024, after which it resubmitted its PA application.
Last month, One 97 Communications said it will consolidate its online and offline merchant payments businesses under Paytm Payments Services to comply with RBI regulations. The offline business consists of merchants serviced through QR, soundbox, EDC machine payments, etc.
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.
Paytm Share Price
Shares of One 97 Communications settled nearly 3% higher at Rs 1,320 apiece on the NSE on Friday. This compares to a 0.05% decline to the Nifty index.
Paytm's stock has risen 29.74% year-to-date and 42.51% in the last 12 months.
