Mobikwik Secures Payment Aggregator Licence for Enhanced Offline Payments

Mobikwik Systems Ltd, the parent entity of Mobikwik, has obtained preliminary authorisation from the Reserve Bank of India (RBI) for a Payment Aggregator-Physical (PA-P) licence. This permits the fintech enterprise to robustly expand its offline merchant payment operations throughout the nation. The firm expressed that this approval will enhance its capacity to construct payment acceptance systems for offline trade and aim for a tenfold increase in its merchant activities by FY28. This news arrives just a month after the company gained RBI clearance for a non-banking financial company (NBFC) license to initiate its internal lending division.

Currently, Mobikwik caters to a network of 4.9 million merchants with offerings such as UPI QR, Soundbox, and EDC machines. The firm plans to concentrate on small enterprises, oil and gas retailers, and organised retail in the next 18 to 24 months as a segment of its merchant growth approach.

Expansion Strategy for Merchant Services

As stated in the filing, Mobikwik aims to substantially enhance the deployment of Soundbox and EDC devices to boost its presence in offline acquiring. The Gurugram-based fintech mentioned that offline merchant payments present superior monetisation prospects through Merchant Discount Rate (MDR), subscription revenues, and device rentals, contrasting with consumer payments that primarily operate on zero-MDR frameworks.

Utilising Transaction Data for Growth

Mobikwik also acknowledges the potential of analysing merchant transaction data for credit distribution, paving the way for future financial solutions.

Insights from the Founder

On this significant advancement, the founder, Bipin Singh, remarked that offline merchant payments are becoming a major contributor to growth within India’s digital economy, particularly in underserved regions outside urban centres. He highlighted that the PA-P permission strategically positions the company for expansive development in its merchant payment infrastructure across the country.

Financial Performance

In Q4 FY26, Mobikwik reported an 8% year-on-year rise in operational revenue, reaching Rs 289 crore. The company noted a profit of Rs 4.4 crore, in contrast to a loss of Rs 56 crore during the same quarter last year.