A Milestone for India’s Fintech Leader: Paytm Secures RBI Approval for Offline and Cross-Border Payments

In a significant regulatory breakthrough, One 97 Communications Limited (the parent company of Paytm) announced that its subsidiary, Paytm Payments Services Limited (PPSL), has received final authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator for Physical (offline) and Cross-Border transactions.

This milestone, announced on December 17, 2025, follows the online payment aggregator license granted just weeks earlier in late November. With this final piece of the puzzle, Paytm now holds a comprehensive set of licenses covering every major payment segment in the country.

From Online to Everywhere

For years, Paytm has been a household name for digital wallets and online scans. However, the path to full regulatory compliance has been a journey of persistence. After an initial application was returned in 2022, the company worked closely with the RBI to meet stringent standards, eventually receiving "in-principle" approval in August 2025.

The latest authorisation is a massive step forward. It allows Paytm to move beyond the digital screen and handle "physical" payments—the kind you make at a retail store checkout—while also facilitating "inward and outward" international money transfers.

Joining the Elite Circle

With this approval, Paytm joins a select group of regulated fintech giants like Razorpay, Pine Labs and PayU. It is now one of the few players in India authorised to support domestic and international payments across both online and offline channels through a single, compliant platform.

How This Benefits Paytm

The impact of this approval on Paytm’s business model and future growth cannot be overstated. Here is how the company stands to gain:

• Unified Merchant Ecosystem: Paytm can now offer a "one-stop shop" for merchants. A business owner won't need different providers for their website, their physical shop and their international clients. Paytm can handle it all, making the service stickier and more attractive to large enterprises.
• Revenue Diversification: Cross-border transactions typically carry higher margins than domestic ones. By facilitating international payments for small businesses and freelancers, Paytm opens up a lucrative new revenue stream.
• Market Confidence: Regulatory clarity is often the biggest hurdle for fintech stocks. Securing these licenses signals to investors that Paytm has met the RBI’s rigorous compliance and security standards, potentially stabilising its market position.
• Scaling the "Soundbox" Success: Paytm is already a leader in offline devices like the Soundbox. This formal license allows them to deepen their footprint in the offline retail market, integrating more complex financial services directly into the merchant’s physical store.

The Path Ahead

While Paytm’s net profits have seen fluctuations due to one-time accounting adjustments and investments, its operational revenue remains robust, standing at Rs 2,061 crore in Q2 FY26.

This regulatory green light essentially removes the "growth ceiling" that had been in place during the application period. As PPSL prepares to launch these expanded services, the focus will shift toward execution—onboarding new international merchants and solidifying its lead in the offline payment space. For the everyday user and the local shopkeeper, it means a more seamless, secure and versatile payment experience under the familiar Paytm brand.

About One 97 Communications Ltd (Paytm)

Founded in 2010 by Vijay Shekhar Sharma under One97 Communications, Paytm is India’s leading financial technology platform, dedicated to bringing hundreds of millions of Indians into the mainstream economy. Headquartered in Noida, the company evolved from a pioneer in mobile recharges and digital wallets into a comprehensive ecosystem offering UPI payments, merchant solutions and financial services like insurance and wealth management.

Today, it serves a massive base of consumers and over 44 million merchants, utilising innovative tools like the Paytm Soundbox and QR codes to make digital transactions a seamless, everyday reality across the country. The company has a market cap of over Rs 80,000 crore and the stock has given 97 per cent returns from its 52-week low of Rs 652.30 per share.

Disclaimer: The article is for informational purposes only and not investment advice.