On 26 November 2025, Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One97 Communications, received the final Certificate of Authorisation (CoA) from the Reserve Bank of India (RBI) to operate as a Payment Aggregator under the Payment and Settlement Systems Act, 2007. This approval follows the in-principle licence granted in August 2025 and clears all pending regulatory and compliance requirements. The licence ends the long-standing freeze on merchant onboarding imposed in November 2022, which had restricted PPSL from acquiring new merchants.
A Payment Aggregator (PA) is a non-bank entity that collects payments from customers for multiple merchants and settles them efficiently, acting as a one-stop payment processing platform. With this final CoA, PPSL and Paytm can now legally onboard new merchants, scale transaction volumes, and expand their digital payments business. The licence also reinforces Paytm’s position in India’s fintech ecosystem, strengthening its competitive stance against other payment aggregators.
Market reactions suggest a positive outlook. Shares of One97 Communications are in focus as the licence significantly reduces regulatory risk and could improve investor sentiment. Analysts from JM Financial highlight that Paytm now offers an attractive risk-reward, given the potential to increase payment processing revenues and consolidated financial growth in upcoming quarters. The end of the nearly three-year regulatory uncertainty allows Paytm to refocus on merchant acquisition and market expansion.
This development also marks a crucial step in Paytm’s growth trajectory within the Indian digital payments sector, where competition is intense and regulatory clarity is key for scalability. Going forward, successful execution, merchant adoption, and transaction volume growth will be central to translating this licence advantage into tangible financial outcomes. Long-term investors may view this as a turning point, potentially leading to a re-rating of Paytm’s stock if operational milestones are met.
Overall, the RBI approval not only resolves a major regulatory hurdle but also provides Paytm with a platform to strengthen its digital payments ecosystem, grow revenues, and enhance investor confidence in a rapidly expanding fintech market.