Paytm Payment Services said on Wednesday in an exchange filing that it has received online payment aggregator licence from the Reserve Bank of India (RBI). The company had received an in-principle approval from the RBI in August this year. Shares of Paytm were up 2% at Rs 1,303 in the opening trade today.

In a notice to the stock exchanges yesterday, Paytm said it received the certificate of authorisation from the RBI on November 26 to operate as a payment aggregator. With this, the company will be able to further strengthen its position as an online merchant payment processor.

“In furtherance to our disclosure dated August 12, 2025 and pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we would like to inform to you that Reserve Bank of India (“RBI”) on November 26, 2025 has granted Certificate of Authorization (“COA”) to Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications Limited ("the Company”), to operate as a Payment Aggregator under the Payment and Settlement Systems Act, 2007,” the company said in the exchange filing.

 A payment aggregator license allows a fintech company to process online payments on behalf of merchants. This facilitates the non – banking entities to serve as an intermediary between customers and merchants by collecting collecting, pooling, and then disbursing the payments made by the customers and reconciling the same with the merchants.

It may be noted that this license is a routine but crucial one for the fintech companies as it allows them to facilitate transactions across payments platforms like UPI, debit and credit cards and online payments.

However, Paytm, which applied for the licence in 2020, had been facing regulatory issues and the same was rejected by the RBI in 2022 due to non-compliance with the FDI norms, which affected the on-boarding of new merchants and expansion of use base.

However, the company’s subscription paying merchant base grew in the last couple of years with pocket sound box and music soundbox and merchant digitistion support initiatives.

In August this year, the banking regulator gave an in-principle approval to Paytm to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007.