Paytm Transfers Offline Payments business to PPSL: A Strategic Restructuring
Announcement of Transfer: paytm (One97 Communications Limited) has announced the transfer of its offline merchant payments business to its subsidiary, paytm services Limited (PPSL), in compliance with the reserve bank of india (RBI) guidelines.
Restructuring to Meet RBI Guidelines:
The move is aimed at restructuring Paytm's ₹2,580 crore offline merchant business according to the RBI's Payment Aggregator Regulations, ensuring better alignment with regulatory standards.
Services Affected:
Services such as QR code payments, soundbox, and card machine payments will now be managed under PPSL. The transition will take place via a "slump sale" on a "going concern" basis.
Regulatory Compliance:
This restructuring ensures that all of Paytm's payment aggregation functions are centralized under a single regulated entity, enhancing operational efficiency and synergy.
Approval Status:
PPSL has received in-principle approval from the RBI to operate its online payment aggregator business. Full transaction approval is expected by december 2025, after board and shareholder approvals.
Transaction Details:
The business transfer will occur at book value (net asset value). It is not expected to affect Paytm's consolidated financial results, as the transfer is internal and does not involve any change in ownership or control.
Impact on Paytm's Business:
In FY 2024-25, Paytm’s offline payments business generated ₹2,580 crore, which accounted for nearly 47% of its total revenue. As of march 2025, this segment’s net worth was ₹960 crore.
Completion Timeline:
The transfer process is expected to be finalized by december 31, 2025, under a business Transfer Agreement (BTA).
Importance of the Move:
This initiative is a step towards greater transparency and security in India’s payment ecosystem, providing a regulated environment that benefits both customers and merchants.
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