Athira Sethu
Kochi, 3 July 2026
One 97 Communications, the parent company behind Paytm, has stated that the European subsidiary of Paytm, Paytm Europe Payments SA, has obtained the payment institution license in Luxembourg.
This license has been issued by the Luxembourg financial regulator, the Commission de Surveillance du Secteur Financier (CSSF). According to a stock exchange announcement, Paytm Europe has got this approval letter on Tuesday, which came into effect from July 2, 2026.
With the help of this license, Paytm Europe is authorized to provide various payment services in Luxembourg and some other eligible countries of Europe. The list of such payment services includes payment transactions, money transfers between bank accounts, credit transfers, establishment of direct debits, acquiring payment transactions for merchants, etc.
Under this license, Paytm Europe will be able to perform transactions using the credit line of the customer. To make things simple, the Paytm Europe will be able to perform both normal bank transfers and credit-based transactions.
The firm indicated that the licence has no expiry period and will remain active unless cancelled or revoked by the regulator.
One 97 Communications explained that having the licence will not affect the company’s finances in any way. In addition, there are no penalties, conditions, sanctions or any other regulatory concerns regarding the approval. There is nothing more that the company needs to do in respect of the regulator’s decision.
This is one of the major achievements for Paytm as far as expanding its operations beyond India is concerned. In early 2020, Paytm had declared that it had incorporated Paytm Europe Payments SA in Luxembourg. The European subsidiary is a wholly owned entity of Paytm Cloud Technologies Limited, which in turn is wholly owned by One 97 Communications.
As a result of getting the payment institution licence, Paytm Europe can now conduct its business as a regulated payment service provider according to the financial laws of Luxembourg.
This will be useful in ensuring that the business expands further in its plans in the international market and specifically in Europe. This licence does not immediately affect the financial results of the business but acts as a good starting point for the growth in the region.
Paytm is one of the best-known digital payments and financial service providers in India. This latest development clearly shows the dedication of the firm in its plans of expanding globally.
