Good news for fintech giant Paytm: The Indian government has approved its payment aggregator business.
Subsequently, the shares of the parent company, One97 Communications, rose by Rs 46 after the report’s release. Technology Shares company of that was raised 25 or 10 percent, trading at Rs 508. 34 million at INR 85 per share on the Bombay Stock Exchange (BSE).
Speaking to News18, a source privy to the development said. blog of One 97.com that Paytm has been given the green signal by the government for starting a payment aggregator business. But up to now the company does not possess a formal certificate. This development came after the earlier proposed investment from a Chinese entity, and a planning point of friction no longer existed.
The CENT is expected to facilitate Paytm’s application to the Reserve Bank of India (RBI) for a payment aggregator license, which the latter will then deem.
Reuters informed earlier that Paytm has received a government nod for setting Rs 50 crore in a strategic grey subsidiary. This step seems to aim at eliminating the key rationale why the Paytm Payment Services wing of the greater Paytm Company had remained inactive and thus set it free.
Out of all the Paytm corporate business segments, Paytm Payment Services holds massive potential as one of the final substantial streams, contributing nearly 25 percent of Paytm’s consolidated income in the financial year ending March 2023.
Emkay, a brokerage firm, mentioned in a report on July 22 that the delay in multi-branch payment system investment in its payment subsidiary, which is expected in the near term, followed by FIPB approval, may lead to the payment aggregator license, which can of positive sentiment.
The approval granted on Paytm’s payment aggregator business is a momentous achievement for the company, especially given the complex structure of the Indian fintech market.
