Paytm will continue with its online payment aggregation business for existing partners during this process.
India’s fintech platform Paytm has received an extension from the Reserve Bank of India to reapply for a payment aggregator license. In a stock market filing, the company said it has 15 days to resubmit the application seeking authorization for Paytm Payments Services Limited, or PPSL, to operate as an online payments aggregator.
“As per RBI’s letter, on receipt of approval from GoI, PPSL will have fifteen days to submit the application seeking authorisation for PPSL to operate as an online PA. However, if any adverse decision is taken by the GoI, then the same shall be informed to RBI immediately,” the company said in the filing on Sunday.
A payment aggregator license is a type of license issued by a regulatory authority that allows a company or individual to act as an intermediary between merchants and payment processors or acquiring banks. Obtaining a payment aggregator license is necessary for companies that want to operate as payment aggregators and process payments on behalf of merchants. The license ensures that the payment aggregator meets the regulatory requirements for financial transactions.
Paytm will continue with its online payment aggregation business for existing partners during this process and it cannot onboard any new merchants. Additionally, since the communication from the central bank applies only to the onboarding of new online merchants, the decision will not have any material impact on the company’s business and revenues.
Furthermore, the parent of Paytm One 97 Communications, can continue to onboard new merchants and offer them payment services for its offline business. Share of One 97 Communications ended 0.57% higher at Rs 623 on BSE today.