SUMMARY
- Paytm Payment Services Limited (PPSL) receives government approval for foreign direct investment, enabling it to resubmit its payment aggregator (PA) licence application.
- PPSL continues to offer online payment aggregation services to existing partners while awaiting the licence approval.
- The company maintains a compliance-first approach, focusing on contributing to the growth of the Indian financial ecosystem.
Paytm Payment Services Limited (PPSL), a wholly owned subsidiary of One97 Communications, has received approval from the Government of India for foreign direct investment (FDI), allowing it to move forward with the resubmission of its payment aggregator (PA) licence application. The clearance was granted by the Ministry of Finance, Department of Financial Services, on August 27, 2024.
The approval marks a critical step for PPSL, which had previously applied for a PA licence to offer payment aggregation services. The company, in its regulatory filing, stated that with the FDI approval now in place, it will proceed to resubmit the application to the Reserve Bank of India (RBI) for the licence. The licence is essential for PPSL to continue expanding its payment aggregation business and consolidate its position in the Indian fintech ecosystem.
Until the application is resubmitted and approved, PPSL will continue providing online payment aggregation services to its existing partners. The company reiterated its commitment to maintaining a compliance-first approach and upholding the highest regulatory standards. Paytm, as a homegrown Indian entity, is focused on furthering its contributions to the Indian financial ecosystem.
This development follows PPSL’s initial application for the PA licence in February 2024, reflecting its ongoing efforts to align with regulatory requirements and strengthen its foothold in India’s competitive digital payments market.
