Paytm Wins RBI Extension for Payment Aggregator Licence Application: Details
Paytm says it aims to reapply for a payment aggregator licence in 15 about days.
Advertisement
Highlights
- Paytm Payments Services is a subsidiary of One 97 Communications
- Payment aggregators must be licensed by Reserve Bank of India
- Paytm said that they can continue to take on new merchants
Paytm said that the latest move has no material impact on its business and revenue
Photo Credit: Reuters
Indian financial technology company Paytm Payments Services has received an extension from the country's banking regulator to apply for a payment aggregator licence and aims to reapply in about 15 days, the company said on Sunday.
Paytm Payments Services, in the meantime, can continue with the online payment aggregation business for its existing partners, without taking on any new merchants, the company said in a notification to stock exchanges on Sunday.
Paytm Payments Services is a wholly owned subsidiary of One 97 Communications.
Payment aggregators, platforms that bring together various online payment options, must be licensed by India's central bank and banking regulator, Reserve Bank of India.
In November, India's banking regulator had declined a payment aggregator licence for the One 97 Communications unit that owns the popular Paytm brand.
Advertisement
The company said that the latest move has no material impact on its business and revenue and for the offline part of the business, the company can continue to take on new merchants and offer them payment services.
Last month, Paytm said EBITDA (earnings before interest, taxes, depreciation, and amortisation), an indicator of operational profit, before ESOP cost margin improved to Rs. 31 crore during the third quarter ended December 31, 2022.
Advertisement
The company has calculated an incentive of Rs. 130 crore from UPI transactions in three quarters but CEO Vijay Shekhar Sharma said that the incentive may technically make the fourth quarter a free cash flow positive quarter but Paytm will report as a one-time item.
"UPI incentive will be one-off and we will explicitly call out as one-off. Rs. 130 crore that we are quoting is for three quarters. The fourth quarter number will be topped on top of it. Because we are calling it one-time item, we are not calling it free cash flow generative. We would rather say free cash flow generative when we are consistently sure of it," Sharma said during the earnings call in February.
Advertisement
Realme might not want the Mini Capsule to be the defining feature of the Realme C55, but will it end up being one of the phone's most talked-about hardware specifications? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.
Advertisement