Paytm shifts offline merchant business to PPSL post-RBI’s payment aggregator license

Paytm transfers offline merchants business to PPSL

One 97 Communications Limited, which owns the Paytm brand, has completed the transfer of its offline merchants' payment business to its wholly-owned subsidiary, Paytm Payments Services Limited (PPSL).

The development follows after PPSL received the Reserve Bank of India (RBI) license to operate as a Payment Aggregator (PA).

The transfer is a key step in an internal restructuring process, designed to consolidate the payments business within the dedicated subsidiary to align with applicable regulatory requirements, the company said in a statement to the stock exchanges.

The Noida-based payments firm said that the restructuring will also help it achieve operational efficiency.

Paytm has around 1.4 crore offline merchants using its various payment subscription devices.

The RBI approval will allow PPSL to resume the onboarding of new merchants, a process that had been under an RBI freeze since November 2022. Paytm’s strength has been its merchant business from its soundbox, point of sale machines and its online payment gateway business.

Along with the transfer of the business, two senior management personnel (SMP) of Paytm will also be transferred to PPSL. Ripunjai Gaur, COO of offline payments, and Deependra Singh Rathore, CTO of payments, will be transferred to PPSL and will cease to be SMP of One 97 Communications Limited.

This, Paytm said that will help in the consolidation of the payments function under the newly authorised Payment Aggregator entity.

The transaction has been carried out at the book value of the assets and liabilities, with One 97 Communications receiving a lump sum cash consideration. The book value of the business as of March 31, 2025, was reported at approximately Rs 960 crores.

The agreement was executed on November 28, 2025, with the transfer becoming effective from midnight of November 30, 2025, subsequent to the approval of the company's shareholders on November 23, 2025, Paytm said in the disclosure.

The company clarified that since the transfer is between a holding company and its wholly-owned subsidiary, there will be no change in the ultimate beneficial ownership or control, and the entire economic interest will continue to vest with the holding company.

The company noted that the expected growth in this business segment, facilitated by the license, will be reflected in the consolidated financials of One 97 Communications Limited.