Paytm has received a payment institution licence for its Luxembourg-based subsidiary, Paytm Europe Payments S.A. The approval allows the company to offer payment services in Europe and marks another step in its international expansion plans.
Paytm has received a payment institution licence from Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), for its Luxembourg-based subsidiary, Paytm Europe Payments S.A.
In a stock exchange filing, the company said the subsidiary has also been added to Luxembourg’s official list of licensed payment institutions with effect from July 2, 2026. The subsidiary is fully owned by Paytm Cloud Technologies.
The licence allows Paytm Europe to process payment transactions, including credit transfers and standing orders, handle transactions backed by a credit line, and provide payment acquiring services for merchants.
The approval comes a month after Paytm announced a €9 million investment in the subsidiary to increase its paid-up capital and support its business needs. Paytm Europe was incorporated on January 12, 2026, and Paytm Cloud Technologies will continue to hold a 100% stake in the company.
Earlier this year, Nasir Zubairi, founder of the Luxembourg House of Financial Technology (Lhoft), reportedly joined Paytm Europe as its CEO after stepping down from his previous role.
The development is part of Paytm’s broader international expansion strategy. After testing its payment technology in countries such as the UAE, Singapore, and Saudi Arabia, the company is now entering Europe through a wholly owned operating entity, giving it full control over its products, operations, and future growth. Last year, founder and CEO Vijay Shekhar Sharma said the company’s overseas expansion would focus on markets where “small businesses remain underserved.”
Beyond Europe, Paytm Cloud Technologies acquired a 25% stake in Brazil-based embedded finance startup Dinie during FY25. In October 2025, Paytm also partnered with the National Payments Corporation of India (NPCI) to enable UPI payments for NRIs across 12 countries.
On the financial front, Paytm reported its first full year of profitability in FY26, posting a net profit of ₹552 crore, compared with a loss of ₹663 crore a year earlier. Its operating revenue grew 22.3% to ₹8,437 crore from ₹6,900 crore in FY25.
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