Paytm Share Price in Focus; Applies for PPI Licence to Revive Wallet Business Through PPSL

One97 Communications Ltd, the parent company of Paytm, has applied for a Prepaid Payment Instrument (PPI) licence through its wholly owned subsidiary, Paytm Payments Services Ltd (PPSL), as per The Moneycontrol report.  

The application was disclosed in the company's June quarter investor presentation and is its first formal attempt to re-enter the digital wallet business after the cancellation of Paytm Payments Bank's licence. 

The company noted that a wallet offering would add to its consumer payments portfolio by providing users with an additional payment option alongside existing services. 

Licence Would Enable Direct Wallet Operations 

A PPI licence issued by the Reserve Bank of India (RBI) allows authorised entities to issue and operate prepaid payment instruments, including digital wallets.  

These wallets can be used for online and offline purchases, utility bill payments, UPI-linked transactions, and fund transfers within the regulatory framework. 

If the application is approved, PPSL will be able to offer wallet services directly instead of depending on partner banks. 

Move Follows Payments Bank Licence Cancellation 

Paytm's wallet business was a key part of its payments ecosystem before the company expanded into merchant payments and financial services. However, regulatory action against Paytm Payments Bank disrupted these operations. 

In April 2026, the RBI cancelled the bank's licence, citing continued non-compliance with licensing conditions and regulatory requirements. Following the decision, Paytm shifted its focus to maintaining UPI payment services through partnerships with multiple banks and transferred its offline merchant acquiring business to PPSL.  

While payment services continued, wallet operations remained unavailable. 

Application Comes Alongside Improved Earnings 

The licence application comes as One97 Communications reported higher earnings for the quarter ended 30 June. Net profit rose 79% year-on-year to ₹220 crore, while revenue from operations increased 28% to ₹2,448 crore.  

The company attributed the growth to higher merchant payment volumes and expansion in its financial services business. 

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One97 Communications (Paytm) Share Price Performance  

As of July 21, 2026, 1:05 pm, One 97 Communications (Paytm) share price was trading at ₹1,312.20, down 2.62% from the previous closing price. 

Conclusion 

With the application now under RBI's review, Paytm is looking to add wallet services back to its payments portfolio through its wholly owned subsidiary, PPSL. 

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