Paytm Cloud Technologies Ltd (PCTL), a subsidiary of fintech company Paytm, has officially launched a wholly owned subsidiary in the United Arab Emirates (UAE). The new entity is named Paytm Arab Payments LLC and focuses on offering technology-driven merchant payments and financial services in the region.

In an exchange filing, PCTL’s board confirmed an investment of 8 million dirhams, which is approximately US$2.1 million, for the acquisition of 80 000 equity shares in the subsidiary. Paytm clarified that no governmental or regulatory approvals were required for the incorporation of this new entity.

This expansion follows a prior announcement made by Paytm in January 2025, which outlined plans to establish subsidiaries not just in the UAE, but also in Saudi Arabia and Singapore. The move underscores Paytm’s strategy to capitalize on opportunities in international markets amid ongoing regulatory challenges at home in India.

Paytm’s expansion into the UAE comes at a pivotal time as it seeks to leverage its technology stack in markets that present fewer regulatory hurdles. The UAE is particularly attractive, with its fintech sector projected to reach $3.56 billion by 2025, growing at an annual rate of 12.56%. Furthermore, around 25% of all fintech companies in the MENA region are based in the UAE, offering a rich ecosystem for potential partnerships and investment opportunities.

The UAE offers specific incentives for fintech companies, such as lower startup costs and a 0% corporate tax rate in free zones. These advantages make it an appealing environment for Paytm to test its international expansion strategies before potentially moving into Saudi Arabia and Singapore.

As Paytm continues to evolve, this expansion signifies a strategic shift from focusing solely on the Indian market to becoming a global technology exporter. The company aims to transition from a consumer platform to a business-to-business technology provider, reflecting a broader trend among successful Asian tech firms.