Paytm Provides Update on Licensing Progress, Confirms No Delay in Investment for Payments Arm

In a recent development, Paytm has refuted reports claiming that the government has postponed approval for the fintech unicorn’s investment in its troubled payments arm. The denial follows a Reuters report on April 16 that suggested India had deferred Paytm’s $6 million investment in Paytm Payments Services (PPSL) due to concerns over Chinese shareholding in One 97 Communications, the parent company of Paytm.

In a blog post titled ‘Government Champions Fintech: Paytm’s PPSL License Journey Progresses’, Paytm emphasized its commitment to providing users with uninterrupted payment experiences and highlighted its contributions to mobile payments, QR technology, and Soundbox devices in India. Despite the speculation raised in the Reuters report, Paytm maintained that the government has consistently supported fintech initiatives and that the application process is ongoing without any indications of rejection or penalties.

Addressing the issue of Chinese shareholding, Paytm emphasized its status as an Indian company founded by an Indian citizen. The company’s Founder CEO serves as the largest shareholder and sole Significant Beneficial Owner (SBO) of One 97 Communications Limited (OCL). Moreover, all Key Managerial Personnel and Board members of OCL are of Indian origin, with Ant Financial having no special rights or Board representation. Paytm clarified that its formation of PPSL, transfer of online payments business, and the investment of ₹500 million were undertaken to comply with RBI regulations.

Regarding ownership, the statement highlighted that Founder-CMD Vijay Shekhar Sharma holds the largest stake in OCL at 19.4 percent, and Ant Financial reduced its stake to less than 10 percent in August 2023. Paytm reiterated its commitment to supporting Indian entrepreneurship, technological advancements, and seamless payment services for SMEs, underscoring the importance of indigenous innovation in the global market.