Indian fintech Paytm wins a major regulatory battle days after key investor exit

Indian Fintec Paytm received a long-awaited approval from the central bank of the country to manage the payment service for online merchants-one of its Chinese investors identified a key regulatory breakthrough just days after selling its entire part The month of catastrophe and investigationThe

On Tuesday, the Reserve Bank of India approved the Paytm Paytm Payment Services Unit as an online payment aggregator “Principles” to operate, the original company said in contact Filing (PDF) on the Indian Stock Exchange. Authorization comes after more than two years of Nyoda -based fintech Been initially denied License in November 2022 Because of disobedience India has the rules for receiving investment from countries sharing the boundaries of the land.

Without a license, Paytm was banned from operating new online merchants. At that time, the company said that the ban was “no material influence” on the business or revenue. However, at its annual general meeting last September, the founder and CEO of the 97 communication Vijay Shekhar Sharma Describe its purpose Re -applying for the payment Agriculture License.

Authorization comes even after one year of RBI Banned Paytm Payment Bank From receiving fresh deposits and enable credit transactions. Paytm dressed by that effect Quickly transfer the gear And Axis, HDFC, State Bank of India and YES Bank to serve their online transactions and to serve as the payment provider for their consumers and merchants involved with the Mandate.

Paytm could, including new licenses Manage as the services provider For online merchants, enables to receive various payment methods including card, net banking and government-backed unified payment interface (UPI). The approval also highlighted the prohibitions driven by the online merchant imposed by the central bank in 2022.

Authorization comes exactly one week later Came out of China’s ants group Paytm’s remaining 5.8% one sells direct partner in 97 communications For $ 454 million Through block deals. It followed the previous exit in 2023, while the Ent Financial A 10.3% Shares have been sold – worth $ 628 million -We to Sharma in any cash agreement.

Paytm will have to accept a “System Audit” with a cybercastic review and submit its report to the Reserve Bank of India within six months. If it fails to do so, the issue of approval will be canceled in accordance with the RBI letter attached to the company’s stock exchange filing. The license is limited to online payment services and does not extend beyond that opportunity.

The latest Bikash Paytm will help control most values from the online payment gateway to its offline sound box and reduce its dependence on other bank partners, Fintech investor Osburn Saldanha told TechCrunch.

Paytm is currently The third most used UPI payment platformWalmart’s owned Phoneop and Google Pay. Fintech was 6.9% of a total of 18.4 billion UPI transactions in June and 5.6% of the transaction value according to the Indian National Payment Corporation (NPCI). Total, Paytm 1.27 billion UPI transactions processed ₹ 1.34 trillion (about $ 15 billion).

Although Paytm Trales on the phonep and Google UPI pays the UPI market – operates more than 12% of all UPI transactions in June – this company provides a broad suit of business and services to attract both customers and merchants. These include Integrated hardware, software and service levels with offline merchant payment solutions as well as growing credit and nding business.

Paytm Report (PDF) In the first quarter of the fiscal year of the fiscal year 2026, ending in June – its financial year’s first quarter defeated 5 results, as analysts were likely to lose $ 1.27 billion (about $ 14.5 million). Revenue has risen to $ 224 million years over 28% of the year, when the company’s contribution margin has grown to 60% over 50% a year ago.

In addition to the recent financial growth, Paytm’s shares have increased by 8.25% of the year-to-date in 2021, indicating that the company has begun to regulate the market for more than a year after the disaster. The stock was closed at 1,118.50 (about 13 dollars) on Wednesday just before the regulatory approval announced.