India's Paytm has received government approval for investing 500 million rupees ($5.97 million) in a crucial subsidiary, as confirmed by a senior official from the finance ministry.

 

Approval for the unit, Paytm Payment Services, has been delayed for months because of the company's connection to China, but once approved, it will allow the unit to go back to normal business operations without any obstacles. Paytm Payment Services remains a significant portion of the fintech company's operations, making up 25% of total revenue in the fiscal year ending in March 2023.

 

Last month, Reuters stated that the investment had been approved by the government. Vivek Joshi, secretary of financial services, stated that the company may request a payment aggregator license from India's central bank, which will be assessed by the bank.

 

Paytm is a fintech company from India, focusing on digital payments and financial services, headquartered in Noida. Paytm was established by Vijay Shekhar Sharma within One97 Communications in the year 2010.

 

The company provides consumers with mobile payment services and allows merchants to accept payments using QR code payment, Soundbox, Android-based payment terminal, and online payment gateway. Paytm collaborates with banks to provide financial services like microcredit and buy now, pay later options to its customers and businesses.