During Paytm’s Annual General Meeting (AGM) on Thursday, founder Vijay Shekhar Sharma announced plans to reapply for a Payment Aggregator (PA) license from the Reserve Bank of India (RBI). This move follows the recent government approval of downstream investment by One97 Communications into Paytm Payments Services Limited (PPSL). Sharma confirmed that PPSL will resubmit its PA application, having secured the necessary approvals, and will continue offering online payment aggregation services to its existing partners in the interim.
In November 2022, the RBI had rejected Paytm’s initial PA license application. However, the company remains optimistic about securing approval with this new submission.
Paytm’s shares were stable on the stock market, trading at Rs 671, up from Rs 667. The company’s market capitalization stands at Rs 42,693 crore, and Sharma expressed confidence in Paytm’s strong financial position, highlighting its Rs 8,500 crore cash balance as of FY24. He also underscored Paytm’s successful transition to a payment-centric business model focused on merchant payment solutions through devices like Soundbox and Card Machines, offered on a subscription basis.
Sharma further addressed RBI-imposed restrictions on Paytm Payments Bank, which will prohibit deposits after March 15, 2024, allowing only interest, cashbacks, and refunds to be credited.
Summary:
- Paytm to reapply for the RBI’s Payment Aggregator license after receiving government approval for downstream investment.
- The company’s shares remained stable, with a market capitalization of Rs 42,693 crore, reflecting its strong financial position.
- Paytm highlighted a shift towards merchant payment solutions, emphasizing devices like Soundbox and Card Machines offered via subscriptions.