- You can read the official announcement here.
One 97 Communications, the parent company of Paytm, said on Friday that its step-down wholly-owned subsidiary, Paytm Europe Payments SA (Paytm Europe), has received a payment institution (PI) licence from Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF).
According to a stock exchange filing, CSSF informed Paytm Europe on Tuesday that it had granted the licence and registered it on the regulator’s official list of payment institutions, effective July 2, 2026.
This comes within three months of the Reserve Bank of India (RBI) cancelling the banking licence of Paytm Payments Bank Limited.
What services can Paytm Europe offer now? A PI licence is the EU authorisation that lets a non-bank firm provide regulated payment services. It is the most common fintech licence in Europe.
According to the filing with exchanges, the licence permits Paytm Europe to provide three categories of services:
a) execution of payment transactions such as fund transfers and credit transfers, including standing orders (automated, recurring payments), whether from the user’s own payment service provider or another PSP;
b) execution of payment transactions backed by a credit line, again including credit transfers and standing orders; and
c) acquisition of payment transactions (merchant acquiring).
Where can Paytm Europe offer its payment services? The EU’s Revised Payment Services Directive (PSD2) sets out the principle of a single authorisation for payment institutions. This allows a firm to offer its services in one member state throughout the EU without the need for additional local licences. This mechanism is called “passporting”.
This means Paytm can offer payment services across all European countries with a single licence.
Why this matters: Paytm Europe was incorporated on January 12, 2026. Paytm Cloud currently holds a 100% stake in the entity and will continue to retain full ownership following the investment. Last month, Paytm invested an additional €9 million in its European subsidiary
Foraying into Europe via a 100%-owned operating entity gives Paytm full control over its product, operations and expansion.
In its Q3 FY26 investor presentation, Paytm had said it saw international expansion as a key long-term growth driver, with the initiative expected to contribute meaningfully over the next 2–3 years.
Besides Europe, Paytm also operates in the UAE, Singapore and Saudi Arabia.
Last October, Paytm also launched a feature, in partnership with the National Payments Corporation of India (NPCI), to enable UPI payments for NRIs across 12 countries, including the US, the UK, the UAE, Singapore, Australia, Canada, France, and Saudi Arabia.
Paytm reported its first full-year profit of Rs 552 crore in FY26, swinging from a loss of Rs 663 crore in FY25. Revenue from operations came in at Rs 8,437 crore in FY26, up 22% from Rs 6,900 crore in…
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