Mobikwik lands RBI approval for offline payment aggregator license
The fintech firm can now scale its physical merchant network, including Soundbox and EDC machines, targeting a tenfold increase in business by FY28.
— 1 earlier story on One Mobikwik Systems Ltd. →What's new
- Mobikwik received in-principle RBI approval for a Payment Aggregator - Physical (PA-P) license.
- The license allows expansion of offline infrastructure like Soundbox and EDC machines.
- The company aims to scale its current base of 4.9 million merchants tenfold by FY28.
Why this matters
This license opens a path into the offline payments market. It provides a way to earn revenue through device rentals and merchant discount rates that online segments lack. The approval validates the company's compliance framework.
What we're watching
- The pace of EDC machine and Soundbox deployment.
- Revenue shifts as the offline business scales relative to online operations.
- Competition within the ₹1.8-2 trillion offline payments market.
The full read
Mobikwik has secured in-principle approval from the RBI for a Payment Aggregator - Physical (PA-P) license. This regulatory win allows the fintech to expand its offline merchant infrastructure, specifically Soundbox and EDC machines, beyond its current base of 4.9 million merchants. Management targets a tenfold increase in the merchant business by FY28, focusing on small businesses, oil and gas outlets, and organized retail. This follows the recent receipt of an online payment aggregator license for its subsidiary Zaakpay and an NBFC license. By entering the ₹1.8-2 trillion offline payments market, Mobikwik gains access to revenue streams like device rentals and merchant discount rates. The license is a clear signal of regulatory compliance. It provides the necessary foundation to scale operations in a segment that has remained largely underpenetrated for the firm. The next test is how quickly the company can deploy its hardware to capture this market share. It won't be easy.
Questions answered
- What does the PA-P license allow Mobikwik to do?
- The license permits the company to expand its offline payment infrastructure. It specifically enables the deployment of Soundbox and EDC machines to merchants.
- What is the company's growth target for this segment?
- Management aims to grow its merchant business tenfold by FY28. They are targeting small businesses, oil and gas outlets, and organized retail.
- How does this fit into Mobikwik's broader regulatory status?
- This follows the company's recent receipt of an online payment aggregator license for its subsidiary Zaakpay. It also received an NBFC license last month.
- Why is the offline market attractive for Mobikwik?
- The offline segment provides revenue through merchant discount rates and device rentals. These offer different economics compared to the company's existing online payment business.
Story so far
All notes on MOBIKWIK →- 26 May 2026 · 12:21 PM IST Mobikwik lands RBI approval for offline payment aggregator license
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