Paytm secures Luxembourg payments licence to expand European operations
03 Jul 2026, 07:37 PMThe licence allows Paytm Europe to offer a range of payment services, including processing payment transactions, handling transactions backed by credit facilities, and merchant payment acquiring services.
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Paytm said that its Luxembourg-based subsidiary, Paytm Europe Payments SA, has received a payment institution licence from the Commission de Surveillance du Secteur Financier (CSSF).
The approval was granted on July 2, 2026, and the company has now been added to Luxembourg’s official register of payment institutions, filings with the stock exchanges show.
The licence allows Paytm Europe to offer a range of payment services, including processing payment transactions, handling transactions backed by credit facilities, and merchant payment acquiring services.
The development follows Paytm’s recent decision to invest €9 million in its European arm to strengthen its capital base and support future business expansion. Established in January 2026, Paytm Europe is fully owned by Paytm Cloud Technologies, which will continue to hold complete ownership after the capital infusion.
Europe represents a key market for Paytm’s overseas ambitions. Unlike some of its earlier international initiatives, the company is entering the region through a wholly owned operating entity, giving it direct control over products, operations, and expansion plans.
The move comes as Paytm continues to broaden its global presence. In FY25, its subsidiary acquired a 25% stake in Brazilian embedded-finance startup Dinie, while the company has also expanded payment services for non-resident Indians through UPI partnerships across multiple countries.
On the other hand, late last year, Paytm said that its UAE subsidiary Paytm Arab Payment is selling 49% stake to Abu Dhabi-based Abbar Global Opportunities Holdings Ltd for about Rs 19 crore. A few months earlier, The Head and Tale had reported that the fintech company was facing regulatory hurdles in the UAE.
The fintech company reported a net profit of Rs 552 crore in FY26, compared with a loss of Rs 663 crore a year earlier, marking its first full year in the black. Operating revenue also rose more than 22% year-on-year to Rs 8,437 crore.
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