Paytm applies for RBI licence to revive its digital wallet
One97 Communications has applied through Paytm Payments Services for a prepaid payment instrument licence from the RBI. If approved, the move would bring Paytm Wallet back, strengthening its consumer-payments offering and reducing reliance on partner-bank rails.
What happened
Paytm parent One97 has applied through Paytm Payments Services for an RBI PPI licence to relaunch its digital wallet. Approval would restore a key
Key facts
- 79% year-on-year increase in net profit
- ₹220 crore net profit for quarter ended June 30
- 28% increase in revenue from operations
- ₹2,448 crore revenue from operations for quarter ended June 30
- April 2026 Paytm Payments Bank licence cancellation
Why this matters
Paytm’s licence application may reopen partnership opportunities around wallet acceptance, loyalty and embedded payments, while increasing competitive pressure on payment-platform alliances.
What to watch
- RBI acknowledgement, query, approval, conditional approval, or rejection of the PPI application.
- Any disclosure on whether Paytm Payments Services has completed RBI-required remediation related to past group-entity issues.
- Evidence of wallet product pages, app-interface changes, merchant acceptance updates, or user migration campaigns.
- Changes in Paytm's active user base, payment volumes, transaction frequency, and merchant payment mix following the application.
- New bank partnerships for wallet escrow, loading, settlement, UPI interoperability, or card issuance.
- RBI policy changes affecting PPIs, KYC requirements, wallet interoperability, credit-on-UPI, or non-bank payment aggregators.
- Strengthen separation of Paytm Payments Services from legacy Paytm Payments Bank-linked operations, including governance, compliance, settlement, and KYC controls.
- Prepare a phased wallet relaunch focused first on existing verified users, low-risk payment categories, merchant cashbacks, and transit or small-ticket commerce.
- Use wallet restoration as a retention lever by linking balances and offers to Paytm's merchant network, QR payments, subscriptions, bill pay, and loyalty programs.
- Expand partner-bank arrangements for UPI and wallet funding so a relaunch does not recreate single-rail dependency.
- Increase regulatory communications and disclosures around audit readiness, customer-fund safeguarding, grievance handling, and AML controls.