Paytm’s Luxembourg-based subsidiary has been granted a payment institution licence by the Commission de Surveillance du Secteur Financier, Luxembourg’s financial regulator.

One 97 Communications, which operates Paytm, said in a stock exchange filing that Paytm Europe Payments S.A. had been informed by the CSSF on 2 July that the licence had been granted.

The company said Paytm Europe had also been registered on the CSSF’s official list of payment institutions, with effect from the same date.

The licence allows Paytm Europe to execute payment transactions, including credit transfers and standing orders. It also covers payment transactions where funds are backed by a credit line for a payment service user, as well as the acquiring of payment transactions.

Paytm said the authorisation was valid from 2 July and “does not have any specified validity period”. It added that there were no penalties, restrictions, sanctions, non-compliances or financial implications linked to the approval.

Paytm Europe was incorporated in Luxembourg on 12 January 2026 as a wholly owned subsidiary of Paytm Cloud Technologies, which is itself a wholly owned subsidiary of One 97 Communications.

The approval follows Paytm Cloud Technologies’ €9m investment in Paytm Europe, or about $10.26 million/Rs 97.87 crore. The investment was approved on 25 May and completed on 1 June through the subscription of nine million equity shares of €1 each.

The move is part of Paytm’s broader effort to explore overseas markets for its technology-led merchant payments and financial services distribution business.

In its FY25 shareholder letter, founder and CEO Vijay Shekhar Sharma said the company was beginning to explore international opportunities where “small businesses remain underserved”. Its international expansion would be deliberate and take a long-term view.

Paytm has also looked at other international markets. In February 2025, Paytm Cloud Technologies approved a $1 million investment in Seven Technology LLC, the Delaware-incorporated parent of Brazilian embedded finance startup Dinie, for a 25% stake. The investment will help it understand the merchant business landscape and opportunity in Brazil.

The European licence comes after Paytm reported its first full year of profit in FY26. The company posted a PAT of Rs 552 crore for the year ended March 2026, compared with a loss of Rs 663 crore a year earlier, while revenue rose 22% year-on-year to Rs 8,437 crore.