One 97 Communications Ltd., the parent company of Paytm, has announced a strategic consolidation of its online and offline merchant payment operations into a single subsidiary, Paytm Payments Services Ltd. (PPSL), to align with new regulatory requirements. The decision, approved by the board on October 15, 2025, aims to streamline operations and enhance efficiency within the Paytm ecosystem, positioning the company as a formidable player in India's digital payments landscape.
The consolidation involves transferring Paytm’s offline merchant payment business—encompassing services like QR codes, soundbox, and EDC machine payments—to PPSL, which already holds in-principle approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator. This move complies with the RBI’s recent regulations on payment aggregators, issued in September 2025, which mandate stricter oversight of payment processing activities. By housing all payment aggregation under one regulated entity, Paytm seeks to ensure compliance while fostering operational synergy.
The transfer will be executed through a slump sale on a going concern basis, pending shareholder approval, with completion expected by December 31, 2025. As PPSL is a wholly owned subsidiary, the transaction will not affect One 97 Communications’ consolidated financials. The offline merchant payment segment is a significant revenue driver, generating Rs 2,580 crore in the financial year 2025, accounting for 47% of Paytm’s standalone revenue. The net worth of this undertaking was valued at approximately Rs 960 crore as of March 31, 2025.
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This strategic restructuring underscores Paytm’s commitment to adapting to regulatory changes while maintaining its dominance in India’s fast-growing digital payments market. The company has been innovating to stay competitive, recently introducing features like AI-generated expense summaries and enhanced app interfaces to engage users. Industry analysts view this consolidation as a proactive step to strengthen Paytm’s market position amid increasing competition and regulatory scrutiny.
On the financial front, Paytm’s stock rose 2.6% to Rs 1,275.9 per share on the BSE as of 3:25 p.m. on October 15, 2025, outperforming the benchmark Sensex, which gained 0.7%. The stock has surged 75% over the past year and 29% year-to-date, reflecting investor confidence in Paytm’s growth strategy. As the company continues to innovate and expand its offerings, this consolidation could pave the way for further advancements in India’s digital payment ecosystem.
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