India’s central bank has recently approved Paytm’s Payment Services division to operate as an online payment aggregator.

This regulatory nod is a significant milestone for the company, especially following its restructuring efforts in response to previous regulatory directives.

Background on Paytm’s Payments Operations

Payment services form a crucial part of Paytm’s business model, accounting for over half of its consolidated revenue as of June 2024. With this provisional approval from the Reserve Bank of India (RBI), Paytm can proceed with developing its digital payment processing capabilities for merchants, subject to final regulatory clearance.

Notably, there have been recent changes in Paytm’s shareholder structure. Ant Group recently divested its 5.84% stake through block trades, signifying a complete exit from the firm’s ownership.

A company spokesperson stated that this approval marks progress in aligning Paytm’s payment services with current regulatory standards. They also highlighted that further actions will be needed to meet all conditions set by the central bank for final approval.

AI Integration

In February 2025, Paytm collaborated with Perplexity to integrate AI-powered financial assistance within its app. This partnership aims to provide real-time and reliable support in users’ daily financial decisions by leveraging Perplexity’s AI-driven search functionality.

Paytm users can now ask questions directly through the app and access relevant insights in their local language, enabling them to make more informed financial choices on-the-go.