Key Highlights
- MobiKwik received in-principle RBI approval for an Offline Payment Aggregator Physical (PA-P) licence.
- The company aims to expand its merchant business by 10 times by FY28.
- MobiKwik currently supports a network of around 4.9 million merchants across India.
- The company plans to strengthen its presence among small businesses fuel outlets and organised retail chains.
One MobiKwik Systems Limited announced that it has received in-principle approval from the Reserve Bank of India (RBI) for an Offline Payment Aggregator Physical (PA-P) licence. The approval enables the fintech company to process offline merchant payments and marks a key development in its strategy to strengthen its merchant payments ecosystem.
The company stated that the approval is expected to support its plans to significantly scale its merchant business and target tenfold growth by FY28. The licence further strengthens MobiKwik’s position as a full-stack financial technology platform serving both consumers and merchants.
MobiKwik currently supports approximately 4.9 million merchants through payment solutions including UPI QR systems, Soundbox devices and electronic data capture (EDC) machines. The company plans to increase its reach among small and medium businesses, fuel stations and organised retail outlets over the next 18 to 24 months.
According to the company, offline merchant payments continue to present a substantial market opportunity in India as a large share of transactions still takes place through physical channels. The company expects growing merchant adoption and increased deployment of payment infrastructure to support its expansion goals.
Unlike consumer payment transactions that largely operate on zero merchant discount rate models, offline payment services offer additional revenue streams through merchant discount rates, subscription models and device rental income. The company believes that these opportunities could help build a stronger monetisation structure while also supporting merchant credit distribution through transaction-based insights.
MobiKwik also highlighted that the latest approval strengthens its regulatory framework and complements its existing merchant payment capabilities. The company had previously secured an Online Payment Aggregator (PA-O) licence through its subsidiary, helping build integrated online and offline payment solutions.
Commenting on the development, MobiKwik management stated that offline payments remain an important growth area within India’s digital economy and the approval is expected to help the company expand payment infrastructure and strengthen merchant engagement over the coming years.
