Paytm Europe receives payment institution license from Luxembourg regulator
Paytm's European subsidiary, Paytm Europe Payments SA, has secured a payment institution license from Luxembourg's financial regulator, CSSF. The license allows the company to offer services across the European Union.
Paytm's wholly-owned European subsidiary, Paytm Europe Payments SA, has been granted a payment institution license by Luxembourg's Commission de Surveillance du Secteur Financier (CSSF). The announcement was made on Friday via a stock exchange filing.
The license, effective July 2, 2026, permits Paytm Europe to provide regulated payment services throughout the European Union. This authorization leverages the EU's Revised Payment Services Directive (PSD2), which enables 'passporting' of services across member states with a single license.
Paytm Europe is authorized to offer three categories of services: execution of payment transactions including fund transfers and credit transfers, execution of payment transactions backed by a credit line, and acquisition of payment transactions from merchants. The company has invested significantly in its European arm, recently injecting an additional €9 million.
The move aligns with Paytm's broader strategy for international expansion, which the parent company, One 97 Communications, identifies as a key long-term growth driver. Meaningful contributions from European operations are anticipated within the next two to three years. Paytm also operates in the UAE, Singapore, and Saudi Arabia.