MobiKwik Shares Jump 8% After RBI Nod, Fintech Firm Gets Offline Payment Aggregator Licence

Mumbai: One MobiKwik Systems Ltd. shares jumped as much as 8 percent on Tuesday after the company received in-principle approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator – Physical (PA-P).

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The approval has been granted under the Payment and Settlement Systems Act, 2007.

Following the announcement, the stock gained sharply during early trade. Shares later trimmed some gains but were still trading nearly 5.8 percent higher at around Rs 202.

However, the stock remains below its IPO issue price and far lower than its post-listing peak of over Rs 600.

RBI Approval To Boost Offline Payments

The company said the RBI approval will help it strengthen and expand its offline merchant payments business across the country.

MobiKwik plans to increase merchant acquisition and improve payment infrastructure, especially in smaller cities and under-served markets.

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The company currently supports around 4.9 million merchants through products such as UPI QR codes, Soundbox devices and electronic data capture (EDC) machines.

Focus On Merchant Expansion

MobiKwik said it will focus heavily on small businesses, fuel stations and organised retail over the next 18 to 24 months.

The company also plans to significantly increase deployment of Soundbox and EDC devices across India.

Commenting on the development, Bipin Preet Singh, Co-founder, Managing Director and CEO of MobiKwik, said offline merchant payments are becoming one of the strongest growth drivers in India’s digital economy.

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He added that the approval will strengthen the company’s ability to scale merchant payments infrastructure and support its target of achieving 10 times growth in merchant business by FY28.

Huge Market Opportunity Ahead

The fintech company cited industry estimates by Redseer which suggest that India’s offline merchant payments market could reach between $1.8 trillion and $2 trillion in gross merchandise value by FY28.

MobiKwik also said offline acquiring provides stronger revenue opportunities through merchant discount rates (MDR), subscriptions and device rentals compared to consumer payments.

The company had earlier received the Payment Aggregator – Online (PA-O) licence through its subsidiary Zaakpay nearly a year ago.

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