One 97 Communications shares hit a day high of Rs 1,231.90 on Friday, 3 July, after its Paytm European unit won a Luxembourg payment licence.

The approval came through for Paytm Europe Payments SA, the company’s European arm.

Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), granted the licence, and the company confirmed the development in an exchange filing on Friday.

The authorisation took effect from 2 July. It does not carry a specified expiry date, which means Paytm Europe can continue operating under it without needing periodic renewal.

With this approval, Paytm Europe has been added to the CSSF’s official register of payment institutions.

So the licence can now offer a range of regulated payment services in the region. That includes processing payment transactions and credit transfers, including standing orders, both through payment accounts and credit lines.

The company is also permitted to offer payment acquiring services, which allow merchants to accept card and digital payments.

For a company built almost entirely around payments, getting cleared to run this kind of regulated business in Europe is a meaningful step.

It gives Paytm’s international arm a proper legal footing to expand beyond India, rather than operating through partners or workarounds.

By 10:29 am on Friday, stock were trading at Rs 1,212.20 on the NSE, down 0.10% from the previous close of Rs 1,213.40.

Zoom out a bit and the picture looks stronger. Paytm shares are up 7.80% over the past week and have climbed 14.10% over the past month, comfortably ahead of the Nifty Midcap 50 index over the same periods.

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