PayPal Holdings Inc. is close to securing a US$200 million deal to buy a 25% stake in India-based digital payments platform Freecharge, Mint reported Dec. 23, citing "two people aware of the development."

The potential deal is expected to further drive competition in India's online payments industry following India's ongoing demonetization initiative. The board of Jasper Infotech Pvt. Ltd., the parent company of Freecharge Payment technologies Pvt. Ltd., is expected to consider PayPal's offer in the first week of January 2017, one of the people told the publication.

Goldman Sachs is believed to be acting as an adviser for PayPal, while Deutsche Bank is advising Jasper Infotech.

PayPal and Deutsche Bank did not respond to emails seeking comment, while Goldman Sachs' spokesperson declined to comment. A Freecharge spokesperson denied there was a deal in the works.