India’s central bank has granted preliminary authorisation to Paytm’s Payment Services division to function as an online payment aggregator.
This approval is a key regulatory step for the firm, which has been restructuring its payments operations following earlier regulatory interventions.
The move follows Paytm’s announcement in August 2024 that it had applied for a payment aggregator licence from the Reserve Bank of India (RBI). This application came several months after the RBI instructed the company to close operations at its payments bank, a separate entity within its business structure.
Background on the company’s payments operations
Payment services are a core part of the firm’s operations, contributing more than half of its consolidated revenue in the quarter ending 30 June 2024. By securing the provisional go-ahead from the RBI, the firm can continue developing its role in processing digital payments for merchants, subject to final clearance from the regulator.
In related developments, the company’s shareholder base has shifted in recent weeks. Last week, China’s Ant Group sold its remaining 5.84% holding in the firm through block trades, marking a complete exit from its ownership stake.
Representatives from the company noted that the in-principle approval reflects progress in aligning its payment services business with current regulatory frameworks. They added that the next steps would involve meeting all conditions set out by the central bank before obtaining final approval.
In February 2025, Paytm partnered with Perplexity for AI-powered financial assistance. This collaboration marked a step towards incorporating AI-driven intelligence into the Paytm app, offering real-time, reliable responses to users in their everyday financial decision-making. To help customers gain access to accurate insights and stay informed on market trends, Paytm integrated Perplexity’s AI-powered search functionality into the Paytm app, allowing users to ask questions, explore topics in their local language, and make smarter financial choices on the go.
