Paytm has reinforced its regulatory and governance credentials during the December quarter (Q3 FY26), with its wholly owned subsidiary Paytm Payment Services Ltd (PPSL) securing all key payment aggregator licences from the Reserve Bank of India.
The approvals cover online, offline and cross-border payment aggregation, enabling PPSL to operate across the full spectrum of India’s merchant payments ecosystem. The company said the clearances reflect regulatory confidence in its compliance framework, governance processes and operational controls.
As part of its Q3 FY26 earnings disclosure, One 97 Communications Ltd confirmed that it has resumed onboarding online merchants following receipt of the payment aggregator licence in the previous quarter.
Regulatory clarity supports business continuity.
Paytm stated that recent regulatory changes, including updates related to rent payments via credit cards and the real-money gaming sector, had no material impact on its operations, as internal processes had already been aligned with revised guidelines. The company also reiterated that its revenue streams remained unaffected by the RBI’s regulatory actions in 2024, underlining the resilience of its compliance-led operating model.
Profitability momentum continues.
The regulatory progress coincided with continued financial improvement. In Q3 FY26, Paytm reported a profit after tax of ₹225 crore, marking its third consecutive profitable quarter. Management attributed the performance to growth in core payments and financial services, improved operating leverage and disciplined cost control.
During the earnings call, the company highlighted sustained growth potential in the merchant payments business, particularly in the online segment.
“There is significant headroom in the online merchant ecosystem, and we are now actively investing again in this business,” said Vijay Shekhar Sharma, Founder of Paytm, who has also assumed the role of CEO of PPSL. He added that the company is rebuilding sales capacity and evolving PPSL into a true omni-channel payments platform, with deeper monetisation through offerings such as EMIs and value-added payment services.
Focus on omni-channel scale and efficiency.
Paytm has restarted investments in sales and distribution to accelerate online merchant onboarding and expand PPSL’s omni-channel footprint. The company said these initiatives are expected to contribute meaningfully to growth in the coming quarters.
The group also continues to deploy AI-driven capabilities across merchant acquisition, internal controls and collections. These efforts contributed to a 7% year-on-year reduction in indirect expenses during the quarter, supporting both profitability and operational efficiency.
With full regulatory approvals now in place, Paytm indicated that it is focused on scaling its merchant payments business across online and offline channels, while maintaining a strong emphasis on governance, compliance and sustainable growth.