Paytm Payments Service: Paytm’s Big Change! Offline payment business transferred to PPSL..; 2,250 crores invested

• One97 transferred offline payment business to PPSL
• China’s Alibaba Group sells entire stake in Paytm
• RBI approval for PPSL, Rs 2,250 crore investment

Paytm Payments Service: One97 Communications, the parent company of Paytm, has completed an additional investment of Rs 2,250 crore in Paytm Payments Services Limited (PPSL). The investment was made by subscribing to rights issue of PPSL’s equity shares after RBI approval. Paytm has given detailed information about this. PPSL will act as payment aggregator. The company received final approval from Reserve Bank of India in November 2025. PPSL is a wholly owned subsidiary of One97 Communications.

With payment aggregator license, merchants will be able to onboard Paytm payments services. It can also facilitate online transactions. The company first applied for a payment aggregator license in March 2020 but the RBI rejected the application in November 2022. The company was directed to reapply after complying with the FDI norms. Paytm Payments Services was also barred from onboarding new merchants at that time. The ban was lifted in August 2025. China’s Alibaba Group has sold its entire stake in Paytm.

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One97 Communications Limited transferred its offline merchant payment business to PPSL. One97 Communications received cash in return. The company clarified that the transfer is between the holding company and its 100% owned subsidiary, so there will be no change in ownership or control.

Paytm has approximately 14 million offline merchants using various payment subscription devices, including soundboxes, point-of-sale machines and online payment gateways. Along with the transfer, One97 Communications has also sent two senior management executives to PPSL. These include Ripunjay Gaur, COO (Offline Payments) and Dipendra Singh Rathore, CTO (Payments).

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One97 Communications’ operating revenue for the July-September 2025 quarter rose 24 percent year-on-year to Rs 2,061 crore with a net profit of Rs 211 crore. The company posted a profit for the second consecutive quarter. EBITDA increased to Rs.142 crore and EBITDA margin was 7%. Paytm’s payment services revenue grew 25 percent year-on-year to Rs 1,223 crore.

The share price of One97 Communications is currently Rs.1305.85 on BSE. The company’s market cap is over Rs 83,500 crore. In 6 months, this share has increased by almost 46 percent. Brokerage firm ICICI Securities raised its target price for the stock to Rs 1,450 per share from Rs 1,240. Brokerages expect better earnings growth on the back of increased disbursements and loan disbursements, improved margins from product upgrades and better UPI mix. Paytm expects net revenue of Rs 12,523 crore by FY28.