The fintech company said that it has received a letter from the Reserve Bank of India in response to a request from a subsidiary for permission to offer payment aggregator services to online retailers.
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Paytm, a provider of financial services and digital payments has sent an update to the exchanges on Paytm Payments Services, a wholly-owned subsidiary.
The fintech company said that it has received a letter from the Reserve Bank of India in response to a request from a subsidiary for permission to offer payment aggregator services to online retailers.
Now, the business has 120 calendar days to reapply for the payment aggregator services. In order to comply with foreign direct investment regulations, the firm will first obtain the necessary approval for the prior downward investment from Paytm into its subsidiary.
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The company will not bring on any new online merchants during this period.
“We can keep bringing on more offline retailers and provide them with payment options like All-in-One QR, Soundbox, Card Machines, etc. The services will not alter for current online retailers, so PPSL can continue to do business with them “The business said this in its exchange filing on Saturday.
This essentially means that Paytm’s strong business momentum is likely to continue, with no impact on its profitability target as the company can continue to work with its existing online merchants.
Additionally, this development will have no effect on Paytm’s expanding base of device deployments or its expanding base of offline payments, allowing it to keep onboarding new merchants.
Because the notification from RBI solely applies to the onboarding of new online merchants, the company made it clear in its filing that it has no meaningful impact on its operations or revenues.
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