Paytm Europe Payments S.A. (Paytm Europe) received approval from the Commission de Surveillance du Secteur Financier (CSSF)
With this clearance, Paytm’s Europe subsidiary has also been registered on the payment institutions official list, with effect from July 02, 2026
This comes a month after Paytm announced €9 Mn investment in its European subsidiary to increase its paid-up capital and support its requirements of funds for business
Paytm
has secured a payment institution licence for its step-down Luxembourg-based subsidiary, Paytm Europe Payments S.A. (Paytm Europe), from the Commission de Surveillance du Secteur Financier (CSSF).
In an exchange filing, the fintech company said the step-down subsidiary, which is controlled by Paytm Cloud Technologies, received the approval yesterday. With this clearance, Paytm’s Europe subsidiary has also been registered on the payment institutions official list, with effect from July 02, 2026.
Paytm Europe can provide three categories of services with the licence — execution of payment transactions including credit transfers and standing orders, execution of such transactions where funds are covered by a credit line, and acquiring payment transactions.
This comes a month after Paytm announced €9 Mn investment in its European subsidiary to increase its paid-up capital and support its requirements of funds for business.
Paytm Europe was incorporated on January 12, 2026. Paytm Cloud currently holds a 100% stake in the entity and will continue to retain full ownership following the investment.
Earlier this year, Luxembourg House of Financial Technology’s (Lhoft) founder Nasir Zubairi reportedly stepped down from his position to join Paytm Europe as the CEO.
After successful test runs in countries such as the UAE, Singapore and Saudi Arabia, Europe stands as a crucial foray for the fintech giant as it is entering the market via building a 100% owned operating entity, giving it entire control over the product, operations and future expansion.
Last year, Paytm said it expects its international expansion efforts to yield results in the next 3 years. Back then, Paytm founder and CEO Vijay Shekhar Sharma said that the company’s international expansion would centre on countries where “small businesses remain underserved”.
Paytm Cloud also acquired a 25% stake in Brazil-based embedded finance startup Dinie in FY25.
In October last year, Paytm also rolled out a feature, in partnership with the NPCI, to enable UPI payments for NRIs across 12 countries, including the US, the UK, the UAE, Singapore, Australia, Canada, France, and Saudi Arabia.
On the financial front, the fintech giant posted a profit of ₹552 Cr in FY26 compared to a loss of ₹663 Cr in the previous year, marking its first full year of profitability. Meanwhile, operating revenue zoomed 22.3% to ₹8,437 Cr from ₹6,900 Cr in FY25.
Source: Inc42 - Startups
