MobiKwik secures RBI approval for offline PA license, targets 10x merchant growth

Business Desk — Tue, 26 May 2026 06:47:46 +0000

One MobiKwik Systems Ltd. (MobiKwik) has received in-principle approval for its Payment Aggregator – Physical (PA-P) license from the Reserve Bank of India (RBI), positioning the company to significantly expand its offline merchant payments business across India. This development marks a pivotal step in MobiKwik’s journey towards becoming a comprehensive fintech platform that caters to both consumers and merchants through its payment and financial services.

MobiKwik currently supports a network of 4.9 million merchants with offerings such as UPI QR, Soundbox, and EDC machines. The company has identified small businesses, oil and gas outlets, and organised retail as its primary focus areas over the next 18-24 months, with plans to substantially increase its market share in these segments. The company aims to achieve a 10x growth in its merchant business by FY28 through enhanced deployment of Soundbox and EDC machines.

The offline merchant payments sector in India presents a vast and largely untapped opportunity, with industry estimates suggesting a merchant payments GMV potential of USD 1.8-2 trillion by FY28, according to Redseer. Unlike consumer payments, which often operate on zero-MDR rails, offline acquiring offers more robust MDR opportunities, subscription and device rental economics, and faces less competitive pressure. MobiKwik sees this as a long-term monetisation opportunity through increased merchant engagement and leveraging transaction data to facilitate merchant credit distribution.

The PA-P license provides MobiKwik with a solid foundation for sustainable business growth, enhancing its ability to develop compliant, secure, and scalable payment acceptance infrastructure for offline commerce in collaboration with banks. The company had previously obtained the Payment Aggregator – Online (PA-O) license through its subsidiary Zaakpay, bolstering its omnichannel merchant payment capabilities.

Bipin Preet Singh, Co-founder, MD & CEO of MobiKwik, commented on the approval: “Offline merchant payments are emerging as one of the strongest growth drivers within India’s digital economy, particularly across under-penetrated markets beyond urban India. This PA-P approval strengthens our ability to scale merchant payments infrastructure across the country and sets us up for 10x growth in merchant business by FY28. We are grateful to the RBI for the approval and reposing its faith in us. We remain focused on building secure, scalable and technology-led solutions that help merchants participate more effectively in India’s growing digital economy.”

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Zaakpay | Business Upturn

MobiKwik secures RBI approval for offline PA license, targets 10x merchant growth