One Mobikwik Systems, the parent company of Mobikwik, has received in-principle approval from the Reserve Bank of India (RBI) for a Payment Aggregator-Physical (PA-P) licence, allowing the fintech firm to push into offline merchant payments across India.
The approval comes a month after the company secured a non-banking financial company (NBFC) licence from the RBI.
Mobikwik said it believes that offline payments offer long-term monetisation opportunities through merchant engagement and the use of transaction data to support merchant lending.
According to the filing, industry estimates by consulting firm Redseer see the gross merchandise value (GMV) of the merchant payments opportunity at $1.8-2 trillion by FY28.
“Unlike consumer payments that largely operate on zero-MDR rails, offline acquiring offers stronger MDR opportunity, subscription, and device rental economics, while also facing relatively lower competitive intensity,” Mobikwik said in its press release.
The company currently supports around 4.9 million merchants through offerings such as UPI QR codes, soundboxes, and EDC (card payment) machines. It does this as a technology enabler for its banking partners.
Over the next 18-24 months, Mobikwik plans to focus on expanding among small businesses, organised retail, and fuel outlets. It also aims to sharply increase deployments of its soundbox and EDC devices.
Commenting on the development, Bipin Preet Singh, cofounder and chief executive, Mobikwik, said: “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.”
Meanwhile, earlier this month, Mobikwik announced its fourth-quarter (Q4) results for FY26. It reported a net profit of Rs 4.38 crore for Q4, compared with a net loss of Rs 56 crore in the same period last year.
The company’s revenue from operations rose 8% on-year to Rs 289 crore from Rs 268 crore.
