MobiKwik Secures RBI Approval for Offline PA license

One MobiKwik Systems Ltd. (MobiKwik) (NSE: MOBIKWIK / BSE: 544305), today announced that it has received an in-principle approval for its Payment Aggregator - Physical (PA-P) license from the Reserve Bank of India (RBI), enabling the Company to deepen its offline merchant payments business across India. The approval marks an important milestone in MobiKwik's evolution as a full-stack fintech platform serving consumers and merchants through payments and financial services.

MobiKwik already supports a network of 4.9 million merchants through offerings such as UPI QR, Soundbox and EDC machines. The Company has identified small businesses, oil & gas outlets, and organised retail as its three strategic focus segments over the next 18-24 months, with an ambition to materially expand its market share across each. It aims to significantly ramp up Soundbox and EDC deployments to meet its stated goal of 10x growth in merchant business by FY28.

Offline merchant payments represent a large and under-penetrated opportunity in India, with industry estimates pegging the merchant payments GMV opportunity at USD 1.8-2 trillion by FY28 (Source:Redseer). 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 believes that this business creates long-term monetisation opportunities through merchant engagement and utilizing transaction data to enable merchant credit distribution.

The PA-P license means that the Company has the right foundation in place for consistent, long term business compounding. It strengthens the Company's ability to build compliant, secure and scalable payment acceptance infrastructure for offline commerce in partnership with Banks. The Group had also received the Payment Aggregator - Online (PA-O) license through its subsidiary Zaakpay approximately a year ago, strengthening its omnichannel merchant payments capabilities across both online and offline commerce.

Commenting on the development, Bipin Preet Singh, Co-founder, MD & CEO, 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. 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."

Shares of One Mobikwik Systems Limited was last trading in BSE at Rs. 191.25 as compared to the previous close of Rs. 193.15. The total number of shares traded during the day was 62691 in over 640 trades.

The stock hit an intraday high of Rs. 196.60 and intraday low of 190.55. The net turnover during the day was Rs. 12100426.00.

Source : Equity Bulls

Keywords

OneMobikwikSystems INE0HLU01028 Fintech PaymentAggregator License RBI